When mounting debt becomes a problem, it is critical individuals understand there are solutions that can help permanently relieve them of their debt and allow them to start anew. Depending on the type of debts, amount, and income a person has, there are two types of bankruptcy that can be offered for Debt Relief in Lithonia GA. The first step in finding which option will be most viable is for individuals to meet with an attorney to discuss their financial needs.
The first type of bankruptcy is chapter 7 and it is advantageous for those who mostly owe unsecured debts, such as credit cards. The main requirement for chapter 7 is passing the mean’s test. This test is used to measure the applicant’s income against the rest of their state. If the mean’s test is passed, the applicant’s bankruptcy will be carried out through a court-appointed trustee. The trustee takes over liquidation and works to make sure all debts are paid or absolved. This bankruptcy type may be finalized in as few as six months.
When the debts owed are secured with property, such as a mortgage, it is vital a person seeks direction regarding chapter 13 bankruptcy. Chapter 13 can prevent foreclosure by stopping all forms of collection in their tracks. Applicants will be given between three and five years to pay off all debts they owe. The attorney must present a structured payment plan that will need to be approved by the court to ensure the applicant will be able to successfully meet the demands of repayment.
When meeting with the attorney for Debt Relief in Lithonia GA, applicants would be wise to bring in their financial statements, income information, debts, and owned property data. The attorney will need to know as much information as possible about the debts and income of the person so they can help them determine which bankruptcy will be most beneficial.
If you feel as if you are drowning in debt and there is no way out, you can get help from an attorney who works with bankruptcy cases.
