There is often a stigma placed on those who file for bankruptcy. Many believe it is a sign of failure. But that is hardly the case. Some of the most successful people in American history have filed for bankruptcy including Abraham Lincoln, Walt Disney, and even current President Donald Trump. Tough financial times can happen to anyone. The loss of a job, a divorce and huge medical bills can place anyone in a difficult position. Bankruptcy is one of the most effective tools to help people resolve their debt issues and get a fresh start on their finances. First, it is important to consult with a Wesley Chapel bankruptcy attorney that can determine which type of bankruptcy is best for your situation.
Which Type of Bankruptcy is Best for You?
Not all types of bankruptcy are the same. Most individuals in the State of Florida that file bankruptcy has two options–Chapter 7 and Chapter 13 bankruptcy. Each has its own unique remedies to help people resolve their debt problems.
Chapter 7 Bankruptcy
There are many different types of debt relief solutions. One of the most effective is Chapter 7 bankruptcy. It allows people to discharge their debt completely by liquidating assets. To qualify you must pass a means test, which determines whether you have enough income to resolve your debt. Those with insufficient income will qualify for Chapter 7 and will be assigned a trustee to evaluate your financial history and to determine which assets must be liquidated. If your income is too high, you may be eligible to qualify for Chapter 13 bankruptcy.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows people to resolve their debt by enrolling in a payment plan. Unlike Chapter 7, it does not involve the liquidation of any assets. This means you can save your home from a possible foreclosure. However, you must continue to make all of your mortgage payments. The payment plan allows the debtor to reschedule secured debts and extend them over the life of the payment plan. The final payments will be made to the trustee, who will then distribute them to the appropriate creditors. While those filing for Chapter 13 bankruptcy do not have to worry about the liquidation of assets, the payment plan does take longer to resolve the debt.
How a Wesley Chapel Bankruptcy Attorney Can Help
Many people in Pasco County are struggling with overwhelming debt. It can often be a helpless feeling. The decision to file for bankruptcy requires significant thought and research. It is not a decision you should rush into immediately. The first step is to schedule a consultation with an experienced and knowledgeable legal professional with a track record of looking after the best interests of each client.
Are You Seeking Debt Relief Solutions? Schedule a Consultation with the Wesley Chapel Bankruptcy Attorneys at DHW Law
Living in overwhelming debt can be a helpless feeling. The Wesley Chapel bankruptcy attorneys at DHW Law are here to help. Over the years, the husband and wife legal team of David and Gwen Walkowiak have helped many people resolve their issues. They utilize a comprehensive and personable approach to ensure each client is placed in the best position to succeed. Whether you are looking to file for Chapter 7 or Chapter 13 bankruptcy, contact their Wesley Chapel law office today and schedule a consultation to discuss your case.