People who find that they have lost control of their finances often wonder what they should do next. Could it be that seeking bankruptcy protection is the most practical strategy? By consulting with a Bankruptcy Lawyer Glendale AZ, it will be much easier to make the right decision. Consulting an Attorney During the first consultation, the Bankruptcy Lawyer Glendale AZ will want to go over the current financial status of the client. This includes evaluating the amount of debt that he or she currently has, the amount of the monthly payments due on those debts, and the total income that the client generates per month. This will help the lawyer to determine if the client does meet the qualifications set by the state and if filing is possible.
Understanding the Different Types of Bankruptcy Options – Assuming that the client is a candidate for bankruptcy, the next step is to consider which form would be the best option. Many people do not realize that an individual can seek one of two different types of bankruptcy arrangements. As the lawyer will explain, a Chapter 13 bankruptcy does not wipe out the debt immediately. What it does accomplish is placing the debtor under the protection of the court. The court will come up with a repayment plan, and arrange to have a certain amount withheld from the client’s paycheck. Those funds are sent to the court and then distributed according to the plan. One benefit of this approach is that all the creditors can no longer make any attempts to collect on the debt.
In addition, this form of bankruptcy tends to do less damage to credit scores than going through a debt management program. Candidates who qualify for a Chapter 7 bankruptcy action will work closely with a trustee appointed by the court. After determining if the debtor has any assets that can be liquidated and used to settle part of those debts, the court will order those assets to be sold and distribute the funds among the creditors. Any remaining balances are discharged and the debtor is free of those obligations. People who are feeling the crush of debt should Browse Site for more information. Doing so could make it easier to see how bankruptcy could be the right solution, and prompt the debtor to contact an attorney immediately.
