Many people, all across the country, have at one point in their life or another, struggled with their finances. Unexpected bills or emergencies can throw off a household’s budget. This can lead to past due bills and additional charges and fees that can further hurt their finances. Any further issues can create a difficult situation that can make it impossible to get out from under. Fortunately, bankruptcy law in Wellington FL provides relief for those struggling with debt.
Avoiding Bankruptcy
Bankruptcy can be a difficult process that leaves a negative mark on a person’s credit rating. It can also make it difficult for people to get further credit for a long period after the bankruptcy. This makes it important for consumers to do what they can to avoid bankruptcy. Some creditors are willing to work with customers to find a solution to the difficulties. Unfortunately, this option is not always beneficial to those who have lost a job or become too overwhelmed with their debt. In these cases, bankruptcy may be the best option.
Chapter 13 Bankruptcy
For those with a regular income but still struggling with debt, chapter 13 bankruptcy may be the best option. This bankruptcy allows consumers to reorganize their debt and find a payment plan that they can manage. These payment plans are often set up for a term of three to five years. At the end of the term, any remaining debt may qualify for discharge. This process, however, can be complicated and confusing. It is always recommended to seek a professional experienced in bankruptcy law in Wellington FL to help with the process.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is reserved for those with little or no income. When an illness, job loss, or other situation causes a person to lose their regular income, it can become impossible for them to gain control of the debt. Chapter 7 bankruptcy provides a method to help these individuals discharge their debt. Each person filing must first complete a credit counseling course. Any non-exempt property will be sold to pay back the debt owed. However, when the process is complete, consumers can start with a clean slate.
Debt is a problem facing a lot by Americans. Fortunately, there are options available to help in almost any situation. Visit the website to find out about Law Offices of Sean I. Koplow and how they can help.
