In today’s world, many individuals live from paycheck to paycheck, often with little or nothing left over for savings. One emergency or financial setback can create a cascade of financial issues. With the pandemic and the massive job losses that have occurred, many people are facing extreme financial difficulties. Fortunately, the Kania Law Office Claremore Attorneys can offer bankruptcy assistance to help ease this burden.
Chapter 7
For those who have become unemployed or have little to no income for a variety of reasons, keeping up with bills can be impossible. Fortunately, chapter 7 bankruptcy can provide relief for those facing such a great financial hardship.
In this type of bankruptcy, individuals who are under certain income thresholds can have their debt discharged. However, these individuals must first file a request for bankruptcy protection. This process can be long and confusing for those unfamiliar with the legal aspects.
First, all income and property must be reported to the courts. Any property beyond specific exemptions will be liquidated to pay off creditors. Those filing for bankruptcy must also complete a course in finance management. This helps provide individuals with skills to prevent them from being in this situation again.
Once all the required steps have been fulfilled, individuals will then attend a court hearing where the judge will make a ruling on whether to grant the bankruptcy. At the end of this proceeding, all allowable debt will be discharged. This allows individuals to start fresh without the weight of their debt keeping them down.
Chapter 13
For those who still have a regular income and do not meet the requirements for chapter 7 bankruptcy, chapter 13 may be the best option. This option may also be chosen to allow the individual to keep some property that would be liquidated in a chapter 7 bankruptcy.
This type of bankruptcy is a little more complicated than chapter 7. All income, bills, and costs for their daily living need to be examined by the courts. The court will determine how much of the person’s monthly income can be used to pay off debt.
A payment plan will then be created to pay off the debt. This payment plan can extend over a three-to-five-year period. During this time period, it is important that the individual pays the monthly payments on time to ensure they meet the agreement for the bankruptcy.
This payment plan can help eliminate interest charges and penalty fees that can make it more difficult to pay down debt. Upon completion of the payment plan, any remaining non-priority debt may be discharged.
Bankruptcy Consultation
Individuals are able to file for bankruptcy on their own, however, it can be difficult determining which type of bankruptcy is the right option, especially when the person is unsure of the requirements that must be met for each type.
Fortunately, there are attorneys that can assist in the entire process. Many of these attorneys can even offer consultations to help individuals determine which bankruptcy is right for them. In some situations, they may even help find options to avoid bankruptcy altogether.
Bankruptcy is a complicated legal process that can provide benefits to individuals facing financial hardships. However, it is a process that can severely damage a person’s credit for up to a decade. Seeking legal advice can help with the process and determine if it is the best option for the specific situation.
