Using A Bankruptcy Attorney To Become Debt Free
When needing to file for bankruptcy the first step would be to consult with a bankruptcy attorney to make sure you qualify. The bankruptcy attorney will have the information needed about the median income. If the filer’s income is greater than the median income, then the attorney will make other calculations to see if the person still qualifies. If the person qualifies, then the bankruptcy attorney will devise a plan to settle the debts. One advantage is that as soon as the person begins the process, all creditors must back off and become part of the process. In other words, the harassing phone calls and letters will end.
A person can qualify for Chapter 13 much easier, but this entails making a full or partial repayment through the court. The debtor makes up a plan, which must be approved by the court. Once the court approves the plan, then the debtor begins a payment schedule. The court approves a trustee that oversees this payment. The trustee makes the payments to the creditors, and this may involve three to five years of payments. When all payments have been made by the debtor as required by the court, the debt is discharged.
Unlike Chapter 7, Chapter 13 does not have a means requirement; however, the debtor must have a regular income from which he can pay his debts and with which he can make a budget. The downside to a Chapter 13 bankruptcy is the court ordered payment plan. When you file a Chapter 7 Bankruptcy you are finished in 6 months becoming debt free.