Sometimes, debt becomes so invasive to a person’s life they are unable to overcome it. When the bill collectors are calling constantly and a person is doing all they can to pay their bills, to no effect, it may be time to get help from an Attorney in Lawrence KS. Attorneys can help a person go over their financial records to determine the best course of action for attempting to pay down their bills. The attorney will be able to help a person make a sound decision on whether or not bankruptcy is the answer for their debt.
When an attorney reviews the financial records of their client, they can offer one of two bankruptcies. These options can allow a person to overcome their debt and start anew. The requirements of each type are different and one will need to choose the correct type for their debt amount, type, and income.
Chapter 7 is called the liquidation bankruptcy. In this type, a person’s monthly income must not go over the mean income of their state. While there are no limitations on the amount of debt a person can owe, there are some restrictions on income. If a person’s income is above the mean income of their state, they will be required to take a Mean’s Test to determine whether or not they are eligible to file. This allows some debts to be absolved, but a person may also be required to submit the property to be liquidated to pay off their debt.
There is also the option of chapter 13, which is also known as the wage earner’s plan. This bankruptcy is for those who are earning a regular wage and it helps them to plan how they will pay down their debts over a period of time. Debtors develop a plan with their lawyer; that outlines how they will pay down their debts over a period of three to five years. This can help them lower their monthly payments and pay down their payments in arrears. During this time period, bill collectors cannot pursue the debtor with collection activity.
If you are dealing with mounting debt you cannot overcome; there is legal help available. To learn more about your options for bankruptcy, visit Joewlaw.com. Here, you can get the information you need to make a sound decision.
