Many people carry a lot of debt from month to month. For some, they barely make enough money to keep this debt under control. For many of these people, the debt can continue to grow interest and other fees that often seem as though their regular payments are not making a dent in the debt. One unexpected bill or emergency can cause a serious financial problem that can snowball into an avalanche of financial problems. A bankruptcy lawyer in Marietta, GA can help in these situations.
How Debt Can Hurt a Person
When a person owes money to a company, that company often reports their payment activity to a credit bureau. This bureau provides this information for various companies the person may interact with. If the credit is poor, it can limit a person’s ability to do many of the things they need to survive. Poor credit can affect a person’s ability to get a job or rent a home. Poor credit can make it impossible to get out from under the debt. Bankruptcy is an option for these situations.
Chapter 13 bankruptcy is a process that can help many people get out from under the burden of debt. It provides a method for restructuring their debt in a manner that can help them pay off their debt in a manner that they can afford, often within 3 years. However, this process can be complicated and confusing for many people. It will also require a court hearing to allow a judge to approve the restructuring of that debt. A bankruptcy lawyer in Marietta, GA understands this process and can help.
Chapter 7 bankruptcy is for those without a steady income or very low-income people. In this process, any property that is not excluded must be liquidated to pay the debt owed. After that, the debt can be discharged to allow a person to begin with a fresh start. This process requires the person seeking bankruptcy to take courses on how to better manage debt. This process is also better served with the assistance of an attorney.
Filing for bankruptcy can be a confusing and complicated process. All forms and filing must be properly completed or the person can risk having their case denied. An attorney can help ensure the process is followed properly and the bankruptcy goes through.