Paths to Solace
The bankruptcy laws provide two relief options: chapter 7 and chapter 13.
Chapter 7 is designed to help you pay off debts from personal loans, credit cards, payday loans, and medical expenses. This chapter is most suitable for individuals with less property. This is because your assets are sold or liquidated to pay as much as possible to your creditors. After the sale of your assets, any outstanding debts are eliminated, leaving you with a clear slate.
For chapter 7 eligibility, your monthly income must be less than the state's median income. If you earn more than the average income, you must pass a rigorous means test to qualify for chapter 7 bankruptcy.
In contrast, Chapter 13 does not eliminate debts. In this section, your debts are restructured into a repayment plan. While registering for chapter 13 bankruptcy, your average monthly income is taken into account. If your income is below the average, you must repay your debts in no more than 36 months.
If your income is average or above average, you have 60 months to repay the loan.
Insolvency Exemptions
You may use either the federal list or the state's list of exemptions. It is important to note that while you can combine exemptions, you must choose one. To make the best decision, you must locate an attorney who will assist you. In addition to assisting you in selecting the appropriate exemptions, the bankruptcy attorney will also assist you in submitting your bankruptcy petition.
Depending on the number of creditors you have, bankruptcy forms can be as lengthy as sixty pages and too complicated for you to complete. The filing of bankruptcy immediately halts all collection efforts by your creditors.
Additionally, the bankruptcy attorney will assist you in addressing any issues that may arise during the 341 meeting with your creditors. This enables you to be well-prepared and better equipped to respond to any questions the trustees may pose.
Conclusion
This is the information you need regarding insolvency law. To increase your prospects of winning the case, hire the top attorney in your area.
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