At some point in time, all of us have been down the road where our expenses have grown more than our sources of income. For most people, they are able to weather the storm by doing diligent savings while others are lucky enough to have been able to augment their sources of income. However, for some people, before things go very wrong financially, they turn to bankruptcy in order to either make a clean start or at least find a way to reorganize their expense to income ratio and be able to recuperate their financial blows.
Bankruptcy is designed to give debtors a fresh start or at least a new option in trying to pay their debts at an extended period but with more acceptable rates. It is a legal process where a person, who is rendered unable to pay his obligations when they fall due are given options to settle some of their debts in accordance with law. There are different provisions relating to bankruptcy like Chapter 7 bankruptcy where all the assets of the person is liquidated and the proceeds paid to creditors or Chapter 13 bankruptcy where the person proposes a repayment plan where an agreed schedule of payments to creditors are made to satisfy existing debts.
Specifically, Chapter 7 Bankruptcy protection or known also as "liquidation bankruptcy" allows debtors to make a clean start by letting the debtor sell all of his assets to pay off most of his debts before finally being discharged by his creditors. However, the downside is that the debtor will definitely ruin his credit score.
On the other hand, Chapter 13 Bankruptcy proceedings or "reorganization bankruptcy" can be availed of if the borrower's income falls above the limits set for Chapter 7 Bankruptcy. In this type of bankruptcy proceeding, the borrower is allowed to propose a repayment plan to gradually eliminate his debt.
In any of the foregoing bankruptcy options, the procedures are complex and there are pros and cons in filing either for Chapter 7 or Chapter 13 bankruptcy proceedings. Hence, if you are really serious in wanting to eliminate your debts and get the best turn out and be in the best possible financial position after undergoing bankruptcy proceedings, you need to seek legal help from top bankruptcy lawyers who have decades of experience in advising and representing debtors in their bankruptcy proceedings. Free Legal Consultation can definitely help provide you with top notch bankruptcy attorney you need to help you get past your financial problems.
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