Rising and piling debts are an increasing issue in the current times, but luckily, this problem can eventually be resolved. However, it takes time and a great bankruptcy attorney.
There are many ways to get debt relief which include: reducing the cost of interest that you pay, budgeting, or free debt help. Debt relief is defined as limited or total absolution of debt or putting a stop to debt growth that an individual owes to creditors and corporations. It is payable in any form, which can also include properties and land.
Debt Relief through Bankruptcy
When you are not able to pay back the borrowed money to the creditors, you can file for bankruptcy. The benefit of filing for bankruptcy is that it automatically offers you protection that prevents the creditors from harassing you and indulging in money gathering actions; such as, irritating phone calls, emails and court case filings against you. Medical bills, credit cards, and other unsecured debts are also eliminated through bankruptcy Chapter 7 or 11, as per person’s debt status.
As long as the person is able to pay back the complete amount of money, no interest rates are applicable to them. Chances of law suits are also reduced. Bankruptcy also increases the paying back time limit from the minimum 90 days to maximum 5 years without excess interest rate for the increased time. Furthermore, the amount of money you have to pay back, will remain constant, and there will be no ambiguity about it, as compared to debt consolidation.
Debt Relief and Bankruptcy Chapter 7
The rate of success of Chapter 7 bankruptcy is higher as it guarantees protection after the payment of your pension as well as insurance strategies. Also, your debt is payable by your cosigner through this bankruptcy. This bankruptcy includes the liquidation of your assets to pay back the creditors, freeing you from debts. However, deciding the bankruptcy according to your financial situation will be done by your bankruptcy attorney.
Debt Relief and Bankruptcy Chapter 13
Chapter 13 is used when the individual is against the insolvency of their assets in order to pay back the creditors. Debt reorganization and repayment needs to be done for this type of bankruptcy. This is applicable to individuals with income above the median level. To be eligible to apply for Chapter 13, the person must have a daily wage income from which they can pay back their debts. The advantages for filing this kind of bankruptcy are:
- Extra time duration of three to five years to pay back recent and past mortgage dues.
- Reorganization will reduce your debt.
- The rest of the debt that is left is forgiven.
If you are in debt and considering what type of bankruptcy is applicable to you; contact The Walker Law Firm as we have the expertise to get you out of this dilemma. You can also contact us for counseling and we can explore further options to get you debt relief without much hassle by calling 561.689.1512