Claiming Bankruptcy: Legal Options for You
Claiming bankruptcy is the legal procedure whereby an individual or an organization declares that it does not have sufficient funds to pay off its debts. This happens mostly because of layoffs, illnesses, accidents or other large unexpected expenses. Filing for bankruptcy is not an easy decision. You are expected to claim bankruptcy only when you are absolutely sure that you will not be able to pay your debts ever again, and that your financial circumstances are such that your home and other assets are in danger of being taken away from you.
The good news is that you can avail several options in the legal process of claiming bankruptcy. It’s always a good idea to hire a bankruptcy attorney to represent you in the legal proceedings to save yourself from unnecessary stress. The Bankruptcy Law Office of Richard A. Check, S.C. can help you understand the entire legal process, assist you to correctly fill out necessary forms and explain to you all the technical jargon in simple terms. Our attorneys will also be able to protect you from creditors’ persisting phone calls and associated harassment.
Chapter 7 and 13 Bankruptcies
Once you’ve decide to file bankruptcy, the next step is to decide which of the two types of bankruptcies you will claim: Chapter 7 or Chapter 13. Claiming chapter 7 bankruptcy is obviously desirable, since it allows you to pay off nearly all your debts within a few months. If you are not eligible for claiming Chapter 7 bankruptcy, then you can file Chapter 13 bankruptcy which is essentially a repayment plan. You will not have all debts discharged here, but will have to repay them over a course of up to 60 months. The upside is that filing for Chapter 13 bankruptcy will automatically put a stop to any further legal action by your creditors. With seven locations across Wisconsin, we can advise you which option works best for you.
Claiming student loan bankruptcy
Student loans are easily obtained, but can become the hardest debt to pay off. It may not be easy to discharge a student loan via claiming bankruptcy, but there are laws that can prevent your wages to be used for student loan repayment. Student loans can be worked around according to your financial position, even if they cannot be eliminated fully. The Law Offices of Richard A Check are experienced in handling student loan difficulties and can stop not only your wages from being utilized for student loans but can also enable you to have a comfortable repayment plan via Chapter 13 bankruptcy.
What happens to credit card loans?
Claiming bankruptcy for credit card loans is not done separately. Credit card loans fall under either the Chapter 7 or Chapter 13 bankruptcies. They will be completely eliminated by claiming Chapter 7 bankruptcy and will be repaid over a certain time duration with Chapter 13 bankruptcy. So if you’re absolutely sure that your credit card loans have spiraled out of control and you need a fresh beginning, claiming bankruptcy on credit card loans is your best option. Some people believe that it is impossible to get credit again. But the attorneys at Richard Check Law Offices have sufficient knowledge and expertise to help you obtain new loans earlier than you may obtain otherwise.
The way forward
Claiming bankruptcy is a tough decision. But if you have the right legal personnel to help you out, this may prove to be the start of a new, debt-free life for you.