Get a Bankruptcy Attorney to Answer Your Financial Questions

Recently, many Americans have had to endure one of the toughest economies in the history of the United States. Since the downturn of the economy back in 2008, many people have lost their jobs to downsizing or even company bankruptcy. After years of trying to stay afloat without a job, they’ve come to the end of their rope and have some tough decisions to make of whether or not to file for bankruptcy. Historically, Americans have thought of the term bankruptcy of being taboo. Many have tried to avoid filing bankruptcy and done everything they could to hang on hoping a new job will be right around the corner. It seems it’s time to face the fact that our current economy is the new normal. The government keeps reporting the economy is doing fine and no one should worry about a further economic decline. They aren’t the ones that can’t make their house payment and are losing their homes to foreclosure. It’s too bad that good hard-working people are being deceived into paying their bills and not filing bankruptcy. When times get tough and you’re unemployed, they might think about consulting a bankruptcy attorney before it’s too late.

The first step in financial recovery is to . When someone has a large amount of unsecured debt they should start searching the web to get information about Chapter 7 bankruptcy. Filing Chapter 7 bankruptcy will wipe out all unsecured debt including credit card debt, medical bills, payday loans and personal loans. If creditors have already started harassing the debtor, filing bankruptcy under Chapter 7 will stop it immediately because of the automatic stay. The automatic stay will stop all collection activity against the debtor and also stop foreclosure, lawsuits, wage garnishments and all other legal activity. This in itself allows an individual to clear their head and come up with a game plan without the threat of a lawsuit or foreclosure.

If the debtor has a job and is losing their home to foreclosure, they should look for info on Chapter 13 bankruptcy. While, Chapter 7 bankruptcy will also stop foreclosure, in most cases it will only stop it temporarily as the creditor will file a motion with the bankruptcy court for relief of stay that will allow them to proceed with the foreclosure. With Chapter 13 bankruptcy, the debtor and their bankruptcy attorney will be required to submit a feasible repayment plan that will last 3 to 5 years to the bankruptcy court. The automatic stay will be in place for the entire Chapter 13 plan timeframe, so this allows the debtor to be in charge of their financial destiny. Debts in a Chapter 13 bankruptcy are paid by priority with secure debts being paid first and the unsecured getting whatever’s left over. Typically, in a Chapter 13 any unsecured debts left unpaid will be included in the bankruptcy discharge at the end of the payment plan. One benefit of filing Chapter 13 bankruptcy is there is much flexibility. The bankruptcy court understands that five years is a long time and things can change in one’s life, for this reason all the debtor needs to do to make changes to the payment plan is notify their bankruptcy attorney and submit the changes to the bankruptcy court. Depending on the circumstances, the changes can be permanent or temporary. Before making the decision to file, one should consult a bankruptcy attorney to have their personal situation evaluated.

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