If you have reached the point where you feel that you no longer have any hope of being able to keep up with your bills, there may still be options available. Bankruptcy exists in the law as an option because it’s better for both individuals and society if there is a way of helping people out of situations that have reached the point where they are otherwise hopeless. Before you decide what you should do next, set up an appointment with Bankruptcy Attorneys who can help you to take an objective look at your situation and determine what legal options might be available to you.
What used to be called straight bankruptcy is now known as Chapter 7 bankruptcy. It’s a system in which you are allowed to keep a portion of your assets, but you have to agree to give up everything else. The other money and items are taken and used to satisfy as many of your debts as possible, and the creditors are obligated to accept this as full payment.
For most types of debt, including medical debt, this can be an option that allows you to start over with a clean slate. It’s important to speak to Bankruptcy Attorneys about it, however, to make sure that you have a clear understanding of what assets you keep, what you have to give up, and whether any of your debts would not be affected by this process.
People who don’t qualify for Chapter 7 are often able to benefit instead from the Chapter 13 process. In this, the courts help eligible people to set up a payment plan to repay their creditors. This can include helping people to catch up on their mortgage payments if they are behind. Payments can last for up to five years, after which any remaining debt is discharged and people can go on with their lives.
There are legal requirements to qualify for each category, and Bankruptcy Attorneys are the best people to help you assess your situation and to decide what you want to try, if anything. You can make an appointment for a consultation with Laura Margulies & Associates LLC if you want personalized advice.