Dealing with overwhelming debt can take its toll on a person’s life and cause them to feel overly stressed. When a person has fully addressed their debt head-on, yet is not finding any relief, there may be legal help. Through a bankruptcy law firm, a person can learn about their options for being free of their debt. There are a couple of different types of bankruptcy that can be filed, depending on a person’s finances and the amount of debt they owe their creditors. With the help of a lawyer, a person does not have to struggle with their debt alone.
When a person meets with the bankruptcy law firm, they will be asked to provide information on the debts they owe, along with their income and assets. The lawyer will need to carefully review this information so the right type of bankruptcy can be pursued. Chapter 7 bankruptcy is a good choice for people with unsecured debts like hospital bills and credit cards, while chapter 13 is more beneficial for those who are in danger of losing their home, car, or other property.
In order to file for chapter 7, a person will be required to pass a Mean’s Test. This test measures their income against the median income in their state to ensure they do not make too much money to be eligible. This is the fastest method of debt recovery, typically only lasting around six months.
Chapter 13 has its own requirements too. A person can only file bankruptcy due to a certain amount of debt. In this type, payments must be made to ensure old debts are paid off and new debts are kept current. This bankruptcy will typically be finalized in three to five years.
If you feel you are drowning in debt and there is no way out, contact the law firm of Hogan & Associates, P.C. they help people who owe large amounts of debt so they can overcome it and seek financial freedom. Through these legal services, a person can be given the full guidance they need in pursuing bankruptcy and making the right financial decisions. You can olso connect them on Facebook!
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