If you cannot pay your debts because you owe your creditors more than you can afford, it might be time to consider bankruptcy. The idea of filing for bankruptcy might sound intimidating, but it is one of the ways that you can manage your debt. If you want to go this route, you can get a Bankruptcy Lawyer in Pasco County to help you with the process.
People file for bankruptcy for different reasons. Sometimes it’s related to medical debt. For others, being fired or laid off from work makes it difficult for them to pay their debts due to lack of income. Student loan debt is increasingly problematic for many, while others opt for bankruptcy because of a divorce or another significant change in their personal lives.
The Bankruptcy Lawyer in Pasco County will advise you and help you with your case. You’ll learn which type of bankruptcy is right for you and what you’ll need to do based on which type you choose.
In Chapter 7 bankruptcy, you’ll liquidate your assets to repay your creditors and have any remaining debt discharged. In Chapter 13, you’ll retain ownership of your assets and commit to a three to five year payment plan to repay your creditors. Both chapters have advantages and disadvantages, so it’s important to know where you stand and choose the right chapter for you.
If you have dischargeable debts like medical bills, personal loans, court judgments, old taxes and credit cards, bankruptcy can help you with these debts. It is good to note that not all debts qualify. Debts like alimony, recent taxes, and past-due child support as well as students loans dot qualify. There are different rules for chapter 13 and chapter 7 bankruptcy filings that your attorney will advise you on.
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