There are many reasons a person might end up in debt. Though most people are able to pay down their debts and go on with their lives, there are circumstances that can arise and cause problems. Whether due to the loss of a job, an extended illness or because of poor financial choices, debt can outgrow an amount you are able to pay. When this happens, it is imperative you do all you can to stay involved. Ignoring your debts will only lead to further problems.
When you begin to experience debt, it is important to contact those companies you owe. Communication is key and may help you avoid further action from being taken. In some cases, creditors are unwilling to work with those who owe them. If you have found this to be the case, you may want to consider contacting Debt Relief Law Firms.
The first step the lawyer will take is to go over your debts and your income. In the case of secured debts, the lawyer may attempt to contact the creditor and see if any arrangements can be made. If no satisfactory solution can be reached, there is bankruptcy. Bankruptcy can allow you to overcome your debt so you can regain financial control of your life.
There are two options you have for filing for bankruptcy. The Debt Relief Law Firms will help you decide which type will be most beneficial. Chapter 7 is for those with mostly unsecured debt. This is an option that allows you to settle your debt in as little as six months. The main requirement of chapter 7 is the applicant must pass a Mean’s Test. This measures the applicant’s income against the median income. As long as it does not go over, the individual will be approved.
Another option gives a greater amount of time for resolution of debt. In this type, there are no requirements and the debt is typically paid down over two to five years. The amount of time given will depend on how much debt is owed and how much the monthly income is. Applicants must pay a payment through the court each month.