Whenever there is a change is circumstances, people often start to fall behind with payments and the creditors start to become impatient. If it is a company which is experiencing a downturn in profitability, then matters become even more fraught. But with both these circumstances there is some help at hand with a bankruptcy attorney or a bankruptcy lawyer. Both can help the affected person or company with some sage advice to try to mitigate any losses.
For individuals, finding some kind of happy medium when it comes to paying bills is probably, the best way to halt problems. If the person feels that they cannot keep up with credit card debt, for example, then the first thing that they should do is to advise the company of their difficulties. What the company does is to try to work out a plan so that at least part payments can be made to keep the debt from getting too large.
Bankruptcy Lawyer Tampa, Bankruptcy Lawyer Seattle, Tacoma Bankruptcy Attorney,
But some people make the cardinal mistake of taking out other cards to pay off the original debt and this escalates the debt in the end. They are in fact just delaying the time when the inevitable will happen and they will be taken to court. However, the expert will surely be able to point them in the right direction to help them to save their goods or assets.
Because so many people have found themselves in this position of late, the government came up with a plan to help people as much as possible. This came in the guise of Chapter 7 and Chapter 13 which has been quite successful in helping people to either service their debt, or to get it wiped out completely.
With Chapter 7 a means test is applied and the individual has to submit all the outgoings of his household, and these are very closely scrutinized, for the court to consider. If any of them are thought to be luxuries then they are disallowed. Then, if the income that is generated is less than the accepted outgoings the credit card debt is wiped out completely. With Chapter 13, the criteria are the same except for the amount coming in being more than the amount going out. In this case, all the debts are accumulated into one sum and a payment plan is worked out. But the goodness of this is that no interest is added on anymore, and the penalties that used to be applied also cease.
Of course, this is not an easy way out of debt by any means. But what it does is to give people a chance to recover from a situation that may not have been their fault to begin with. For example, who would have thought that the whole world would go into economic decline at the same time and with such severity? Indeed, people who thought that their jobs were secure suddenly found themselves on short time or with no job at all which makes things very difficult for many families.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Memphis Bankruptcy Attorneys
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment