Bankruptcy is a legal process that allows a person to be able to overcome their debt and start over with a new financial outlook. Bankruptcy should not be entered into lightly and requires careful thought for making the best decision. Knowing what to expect from the process will help individuals to be fully prepared.
What Should Individuals Know?
It is important individuals are aware they have the right to file bankruptcy if they cannot afford to pay their debts. There are many reasons individuals end up needing bankruptcy and they include the loss of a job, an unexpected illness, or even a serious accident. When someone is dealing with way more debt than they can handle, there is legal help available.
If debts are piling up, a person first needs to contact their creditors to see if any payment arrangements can be worked out. If the creditors will not offer any favorable arrangements, an individual needs to schedule a consultation with the lawyer to determine if they are a good candidate for bankruptcy.
Types of Bankruptcy
There are a few types of bankruptcies, but the most common are Chapter 7 and Chapter 13. Chapter 7 is a bankruptcy option that allows people to settle their debts in as few as six months, depending on the type and their income.
To be approved for Chapter 7, a person will need to pass mean’s testing to ensure their income is within the guidelines. If approved, the individual may need to surrender some non-essential property for sale so their debts can be paid.
There is also the option of Chapter 13 bankruptcy. This type is ideal for homeowners who are facing the loss of their home due to foreclosure. The process for going through a Chapter 13 bankruptcy is longer and will take between two and five years. During this period, the individual will work on paying their debts off.
If you are dealing with more debt than you can handle, there is help available. Visit http://tulsabankruptcylawyers.net/ to learn more about their services. They will help you determine if bankruptcy is the answer to overcoming your debt.