Seeking debt relief has become a reality for many individuals and businesses across the country. The recession in the US and world economies and sluggish job growth has caused many businesses to fail and families to be plunged into debt. Sometimes debt and financial difficulty can occur from an unforeseen expenditure and emergency. Divorce, an unexpected medical emergency, or a sudden job loss can send you into spiraling debt. When you are under such tough financial circumstances, talk to a bankruptcy lawyer for advice on debt relief. Some lawyers offer free initial consults and can give you advice on your legal options.
If you are seeking debt relief under the Bankruptcy Code you should take legal advice from an experienced bankruptcy lawyer immediately before your proceed. Administrative procedures are complicated and need meticulous preparation. You have to deposit a number of documents along with your petition. The Bankruptcy Abuse Prevention and Consumer Protection Act has imposed stringent measures and conditions that has made it more difficult to obtain debt relief.
Bankruptcy can help relieve your immediate financial worries if you are being hounded by creditors and facing foreclosure or other drastic measures. The most common chapter under which individuals seek debt relief is liquidation under chapter 7. Under chapter 7, the debtor can hope to retain all the exempt property, such as a family home and car. Non exempt properties such as a second vacation home or second car, cash, bank savings, valuable collections, stocks, bonds and other investments can be liquidated to pay off creditors. A court appointed trustee would be given the responsibility of collecting all non exempt property and selling it to settle some of the loans. The unsecured loans like medical bills, credit card payment dues can be cancelled. Filing under chapter 7 would allow the family or individual to make a fresh start. It would also stop garnishments and stay the commencement and enforcement of any legal action against the debtor.
The consequences of bankruptcy can be long-lasting and should be considered only as a last resort. The information about your bankruptcy can be retained on your credit record for 10 years. With the record of bankruptcy on your credit, you can face difficulties in acquiring credit to buy a life insurance policy, buy a home or seek a job. Some employers will view your credit report before hiring you. In spite of the many hazards, often bankruptcy can be the only option to keep you from losing your home and other assets. To ensure your petition is filed correctly and completely, a bankruptcy lawyer should be consulted at every step of a bankruptcy proceeding.
