Thousands of people across the country are dealing with the stress of credit card debt, foreclosure and other financial burdens. It is a difficult situation to move forward from, especially when there are collection agencies harassing you over delinquent debt. If you are in over your head, bankruptcy can help you eliminate your debt and begin a new path to financial freedom.
Bankruptcy is the legal process through which individuals or businesses in financial turmoil are able to resolve their debts and repay their creditors under the protection of the bankruptcy court. Chapter 7 and Chapter 13 proceedings are among the most common types of bankruptcies for individuals and businesses. Liquidation is the process most used in Chapter 7 proceedings. This is when the property you own is sold and liquidated in order to pay back your debt. In Chapter 13 proceedings reorganization is the process used. This enables individuals with a steady income to develop a plan to repay their debts within three to five years and still keep their property.
We also found this related article a good read:
Using personal bankruptcy to hit the reset button on distressed properties
There is a ripple effect on homeowners who struggle with debt even after losing their homes. Honest people who want to make good on their debts are increasingly overwhelmed and finding it impossible to rebuild their financial lives.
When Dennis and Judy decided to help out their son by buying a second condo home, they never expected that they were headed into the perfect storm – a chain of events that would lead them to try to give away their real estate investments, work multiple jobs, and declare personal bankruptcy.
Keeping up with the payments on two condos – even though those units had lost their value and were worth less than balance left on the mortgage — meant that Dennis and Judy’s credit was good enough to allow them to take out another mortgage and buy a home they thought they could afford. Once they successfully negotiated a short sale on the two condo units, they thought they would finally have financial stability, read full article here
If you are considering bankruptcy, the attorneys at our Law Firm can help solve your debt problems. We can tailor bankruptcy solutions to fit your unique needs.