It’s always a question in the minds of consumers as to whether they should file for bankruptcy or simply tough it out, fighting creditors as best as they can. Ask any Lawyer in Topeka KS his opinion, and he’ll immediately assure you the best option if you’re daily receiving harassing calls, owe back taxes or you’re constantly borrowing money to pay debts is to file a chapter 7 or 13. At the very least, consumers in doubt should consult with an attorney about their concerns, discussing their specific situation in person.
One of the primary questions asked when people Visit the website of a bankruptcy attorney is whether they should file a chapter 13 or chapter 7 bankruptcy. First consider this. A chapter 7 will discharge most unsecured debts consumers have racked up. Then, the trustee in charge of the case will sell any sizable non-exempt property to pay back creditors. This type of bankruptcy typically takes about three to four months to complete. Now, compare this to a chapter 13. This bankruptcy pays back a person’s creditors, although some are paid back completely and others only partially through a structured re-payment plan. This plan can take up to five years to complete, depending on a person’s income. Quite frankly, only about 1/3 of all people who file chapter 13 successfully complete the plan.
The biggest advantage to a chapter 13 plan is it stops a foreclosure and allows a homeowner to make up past due mortgage payments. This is a great option if the person has a steady job with sufficient income to cover the house payments and their chapter 13 payments. However, if a job has been eliminated or hours greatly reduced, it’s typically a better option to go with a chapter 7. While a chapter 7 can temporarily stall a foreclosure unless the consumer can catch up his mortgage, the foreclosure will eventually go through as planned.
If creditors are not being cooperative about working with you on payment plans or the credit card company has recently raised the interest rate on cards due to late payments, it’s time to talk to a Lawyer in Topeka KS about potential options. Don’t bury your head in the sand, thinking it will all right itself, instead seek help in correcting the situation.
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