The status of the recent economy has left many people without jobs and savings accounts. What it has left them with is an overwhelming amount of debt that can take over their lives. If you are one of the people who was affected by the poor economy, don’t suffer alone. Bankruptcy attorneys in Lexington, VA, are there to help you get out of debt legally without making you feel guilty. Finding an attorney who strictly deals with bankruptcy will give you the personalized and knowledgeable service you need to get out of debt the right way.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is one of the most common types of bankruptcy filed. People with an income that is average for Americans are the most common to file this type of bankruptcy. People who wish to file Chapter 7 cannot have a large amount of assets in their home or cars because the debt in this type of bankruptcy is simply written off. Once the bankruptcy is filed, even before it goes to court, creditors are prohibited from contacting debtors for their money. Once the case is approved in court, all approved debt is written off and the consumer is no longer liable for it.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is the choice for those consumers who have equity in their homes or cars they wish to keep. Rather than writing off the debts, consumers experience an affordable restructuring of their debts. Consumers who make more money than their daily living expenses require but are behind on a large number of bills are a good candidate for this type of filing. Consumers are protected from collection calls and attempts at collecting debt as soon as the case is filed in this type as well. The main difference is consumers will continue to make payments to a trustee who will disburse the appropriate amounts as determined in court to each creditor.
Determining the type of bankruptcy that is right for your situation can be overwhelming. Rather than trying to navigate the system on your own, it is best to find reputable bankruptcy attorneys in Lexington, VA. Finding attorneys who strictly deal with bankruptcy and not represent the occasional client will ensure you have an attorney who is knowledgeable in the latest laws and procedures involved. This will allow your process to go as smooth as possible, giving you financial freedom in the near future.