Today it is harder than ever to make ends meet. To acquire property, essential services, and basic necessities like clothing for the family, people are turning to credit cards, adjustable rate mortgages, and secured and unsecured loans to survive.
Today it is harder than ever to make ends meet. To acquire property, essential services, and basic necessities like clothing for the family, people are turning to credit cards, adjustable rate mortgages, and secured and unsecured loans to survive. When the unthinkable happens--job layoffs, personal injury, a spouse losing a job--the debt does not go away. Payments that were made when the family was solvent are no longer possible. Aggressive and constant pressure from credit agencies and collection companies begins, and there seems to be no way to cope with this huge weight of debt. Filing for bankruptcy can provide immense relief for those threatened by collection calls and wage garnishments. It can give families a fresh start and eliminate the burden of unpayayble debt. There are two kinds of bankruptcy available for individuals: Chapter 13 and Chapter 7 bankruptcy.
Chapter 13 bankruptcy is a solution for individuals who still have the ability to make payments but are drastically behind on payments. Two good examples of people who could benefit from declaring Chapter 13 bankruptcy are a person who was out of work for several months and just found a new job or someone who missed months of work due to illness. Chapter 13 can allow the filer to keep his home and other property. The person filing Chapter 13 is required to make a plan to pay the unsecured debt over a three to five year period. The plan is worked out between the filer and creditors to make the debt repayment manageable.
Chapter 7 bankruptcy is another way to resolve a personal debt crisis. This will resolve debt even faster than filing Chapter 13, but may involve liquidation of assets, such as a home or car. All unsecured debt is completely forgiven. Because of the potential for losing property and assets, this form of bankruptcy should be filed when there is no income from which to attempt to make restitution toward debt. People filing under Chapter 7 have to pass an evaluation to determine whether or not they qualify.
Whether Chapter 13 or Chapter 7 bankruptcy is filed, the filer must go to court. Filers should have an experienced and knowledgeable bankruptcy attorney. For over twenty-eight years Attorney Harold Wampler III has been representing Dayton residents and guiding them through the bankruptcy process. Contact Attorney Wampler today at hwampler3law.com.