Kansas consumers could find a more appropriate solution for managing debts through an attorney. With an attorney’s help, they could discover options that they were aware of that could help them reduce their total balances by half. Through debt help in Lawrence, KS, the attorney could also help them find a way to become debt free in a shorter amount of time.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy helps these consumers pay smaller payments to each creditor. It encompasses all debts into one payment plan. This helps them reduce the total amount they spend each month on debt settlement. It also spans over a period of up to five years and allows them ample time to settle these debts.
Through these claims, they could also discharge certain debts. When this happens, they aren’t responsible for the debt. For most consumers, this could eliminate thousands of dollars in debt quickly.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is an opportunity to settle debts through liquidation. This involves the sale of key properties and assets to generate funds to pay off all debts. These cases require a trustee who manages the sale of the items and distributes the proceeds to the consumer’s creditors.
Like chapter 13, the consumer receives an exempted value based on the type of property. The trustee sends these funds to the consumer based on local bankruptcy laws and after the debts are settled. Both bankruptcy claims provide an automatic stay as well to prevent adverse legal action.
Loan Modification and Settlements
Loan modifications are changes made to the terms of the loan. The attorney achieves a modification based on updated lending laws. These laws prevent lenders from taking advantage of consumers based on an inability to pay that was present when the loan started.
Settlements are available through negotiations. The attorney could reduce the balance of the debts by arranging a settlement. For some consumers, this cuts the debt value in half.
Kansas consumers acquire debt help through attorneys who are familiar with applicable laws. These attorneys identify the most effective strategies for reducing the consumer’s debts and making them more affordable. Consumers who need debt help in Lawrence, KS should click here for more information.
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