In the tough financial climate that we find ourselves in, more and more people are becoming desperate for a financial solution to their economic woes.? Let?s face it: there is only so much you can do.? If you are forced to take a pay cut, or even worse, face the reality of being laid off, your options of paying your creditors becomes more and more slim.? There comes a point when bankruptcy may be a suitable option for you.
If you have been considering bankruptcy, then it probably is not as scary as you may be imagining.? While there are different forms of bankruptcy, you should never attempt to go through this process yourself.? What you need to do is to hire a bankruptcy attorney that is local to you.? There are several types of bankruptcy that I want to talk about, so that you have a better idea of what options are available and which option may be the better fit for you before you think about hiring a bankruptcy lawyer, and here they are:
Chapter 7 Bankruptcy
If you are drowning in credit card debt, personal loans, hospital bills, or other kinds of unsecured debt, then this option may be for you.? Chapter 7 bankruptcy has also been called ?fresh start bankruptcy? eliminates certain types of unsecured debts and renders them dischargeable giving you a fresh start.? Once again, it is imperative that you seek professional consulation before considering this option.
Chapter 13 Bankruptcy
Unlike Chapter 7 bankruptcy, where your debts are eliminated, if you opt for chapter 13 bankruptcy you are paying your debts under what might be considered a debt consolidation plan.? The benefit to this is that your debts and payments are handled by a trustee who deals with the creditors, so you don?t have to worry about annoying calls from creditors.? More importantly, however, you pay down your debts without accruing interest with the only exception being student loans.? In addition, you pay a single payment once per month as opposed to individual payments to each creditor.
So, there you have.? These are the two most common types of bankruptcy, and you want to consider the pros and cons of each before signing an agreement with an attorney.? When you meet with a bankruptcy lawyer, he or she will also be able to help you identify which bankruptcy option is best for you and your financial situation.
Brandon Jones enjoys writing for a Los Angeles bankruptcy lawyer.
(examples: auto, banking, college, credit cards, debt, frugality, insurance, investing, loans etc.)
Source: http://www.fullfinance.com/bankruptcy-2-common-types-to-fix-your-financial-woes/
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