The Federal Reserve recently released a disturbing report. Less than half of all middle-class Americans have enough savings to survive three months without working. An unexpected bill of $400 can set them behind for months. If they lose their job or become seriously ill, they face financial ruin. Fighting cancer or finding a new job can take far longer than 90 days. People who have always worked hard may be too embarrassed to admit that they can’t pay their bills. They keep falling further behind and pretty soon they are waking up to nasty phone calls from bill collectors. They should contact a Bankruptcy Lawyer in Huntersville NC for help.
The lawyer will ask them to list all of their income for the past six months. He will also want them to list all of their assets and debts. This will help the lawyer determine which type of bankruptcy fits their situation. Many debtors want to use Chapter 7. It only takes three months to complete. The bankruptcy court appoints a trustee to liquidate the debtor’s assets. The liquidation profits are distributed among credits. Any remaining debts are forgiven. However, Congress recently made it more difficult for people to use Chapter 7. Only people who make less than the median income in North Carolina for the previous six months are automatically allowed to use Chapter 7. They also have to understand that certain types of debt are not forgiven. These include student loans, alimony and child support, and taxes owed to the Internal Revenue Service.
Debtors usually have an easier time paying off their student loans or back taxes, once their other debts are erased. If it is still hard for them to make the minimum payments, the Bankruptcy Lawyer in Huntersville NC can hep them work with government agencies to create lower payment plans. It’s important that they stabilize their entire financial position, during the bankruptcy process. People are only allowed to declare bankruptcy once every eight years. So they could end up in worse trouble if they don’t have all of their debts under control. The Lake Law Office can perform all of these services for people who need a fresh financial start. Contact them by phone or through their website to learn more about the bankruptcy process.
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