What's the best bankruptcy filing for me?

Most would likely agree that the economy is generally on the upswing. Recent news about the real estate market in Norfolk County, however, suggests there is room for further improvement. The good news is that residential and commercial properties are selling at higher prices. The bad news is that fewer property transactions are taking place. Also, the mortgage lending rate was down last month, compared to the same month a year ago.

What this suggests to some observers is that foundational elements of the local economy are rather spongy. Thus, it should come as no surprise if you are among those struggling financially and feeling a need for debt relief. To find the right solution for your situation, explore your options with an experienced debt relief attorney.

Possible debt relief models

Bankruptcy might not be a notion you want to entertain, but there are reasons to explore it as a possibility. The following are those most experts consider most important:

  • Debt collection is halted
  • Protection of your home or business
  • The chance to clear the deck and get a fresh start

The most common forms of bankruptcy for individuals are Chapter 7 and Chapter 13.

Chapter 7 offers the speediest resolution of debt problems. To qualify, filers must be able to show that their income is below the median income for the state and lack any disposable income to put toward bills. It is possible that nonexempt property will have to be sold and the proceeds put toward paying off debt, but at the end of a set period, often just months, remaining debt can be discharged.

If you don't qualify for Chapter 7, Chapter 13 provides time to work out a plan with the court-assigned bankruptcy trustee for paying debts. The term of protection usually lasts several years. Provisions depend on the filer having sufficient income to meet secured or priority debts, and some to put toward unsecured debts.

Other options, including Chapter 11, may exist for individuals, though this form of bankruptcy tends to be more appropriate for businesses as a means of restructuring debt. Loan modification may be another choice.

With so many means to an end, getting comprehensive information is the way to be sure you're doing what's best for you.

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