Deep in Debt? Speak with Attorneys in Omaha for Help

Unemployment, medical bills and low wages have left many people unable to pay their daily expenses. In desperation, they may have even tried to use a payday loan to get medicine for their children or to put food on the table. This high-interest loan even made matters worse. They have fallen so far behind, there is no chance that they will be able to get caught up. They should call an Attorneys Omaha practice and find out the best way for them to declare bankruptcy.

A Chapter 7 bankruptcy might be the answer, if they make less than the average income for the state of Nebraska. This is called a Fresh Start bankruptcy because all of the person’s non-protected assets are sold. The proceeds are then distributed to the creditors and the person is free to get on with their life. The process usually takes under six months. Most people are very embarrassed about declaring bankruptcy and dread having to face their creditors. During this process it only happens once at the creditor’s hearing. Certain assets are protected from being sold this usually includes the person’s primary residence, their car, clothes, and tools that they need to make money. This list can vary from state to state. It is the job of the debtor’s Attorneys Omaha practice to protect as many of their assets as possible.

People who make more than the average income in their state, may have an ability to continue to pay some of their debts. A Chapter 13 bankruptcy sets up a repayment plan under the watchful eye of a court-appointment bankruptcy trustee. The trustee evaluates the debtor’s monthly expenses and puts them on a budget. Barnhart Law Office attorneys can ensure that this is a fair budget for both parties. Everything else that the debtor makes goes toward paying off their bills. Usually the creditors agree to write off the remainder of the debt. The debtor can be kept on this budget for up to five years. At the end of five years, the process is complete and the remaining debts are erased. However, the debts are not fully discharged until the debtor has completed the entire period. If they fail to make the last few payments, the remaining debts will not be erased.

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