If you feel your are drowning in debt and cannot seem to find a way out, you may feel overwhelmed. Many people end up losing everything they have because they do not understand their rights when in debt. First, you need to make sure you contact your creditors and see what type of arrangements they are willing to work out with you. Some companies are more than willing to set up payment arrangements, while others may be difficult to deal with. If you have tried all you can to eliminate your debt and are finding no relief, there are helpful options available. Through the Wichita Bankruptcy attorneys, you can learn whether or not you are a good candidate for filing for bankruptcy, to eliminate your debts.
What Bankruptcy Options are There?
There are two main types of bankruptcy most people choose when they are in debt. The decision on which type to file will be handled through your attorney, who will be able to look at the debts you owe, versus your income and make the decision on which type will best benefit your financial needs.
Chapter 13 — This type of bankruptcy is often the most common, but takes the longest. This bankruptcy lasts for a period of two to five years, depending on the amount of debt you owe. When filing for Chapter 13, you will be allowed to keep your property, but will be required to make a monthly payment through the court system each month. This payment will be dispersed among your creditors, to help to begin paying down your debt. Many people are able to pay all of their debts off within a period of three to five years, though some take longer.
Chapter 7 — When filing for this type of bankruptcy, you will be required to have all of your non-essential property liquidated to pay for your debts. The court will assign a trustee to work over your bankruptcy case. The trustee will be in charge of getting as much money as possible for your creditors, through the liquidation of your assets. You are allowed to keep essential items like your home, car, furniture and clothing.
If you are dealing with more debt than you can handle, you need help from Wichita Bankruptcy attorneys. Visit The Law Offices of Todd Allison and Sarah Newell and learn how they can help you end your debt nightmares.
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