People who do not get a good financial education almost always make mistakes with their money. They buy things they can’t afford on credit; they spend all the money they earn without setting up an emergency fund, and they don’t establish a reasonable household budget. While living life without worrying about finances might be more fun temporarily, it can be devastating for anyone without cash reserves. Fortunately, there are ways to recover from these mistakes and start over financially. A bankruptcy lawyer in Valdosta is often the ideal person to call when debt is out of control.
Lawyers who focus on bankruptcy are typically the best place to turn for advice regarding serious debt problems. Although they file bankruptcy documents on behalf of their clients, lawyers also give guidance and direction to people who might benefit more from another debt relief option. Whether it is credit counselling, a private agreement with a creditor or personal bankruptcy, a bankruptcy lawyer in Valdosta, may lead an overwhelmed client in the right direction.
Bankruptcy is a legal process that can reduce or eliminate debt. Many people qualify for Chapter 7 and can eliminate many different types of debt without having to make another payment. Of course, there are restrictions on the amount of assets a bankrupt person can retain and a notation about the filing remains on the person’s credit report for 10 years. However, for people who can see no way out of their financial circumstances, Chapter 7 bankruptcy can be a lifesaver.
Peoplewho don’t qualify for Chapter 7 may still be able to get debt relief through the bankruptcy code. Chapter 13 bankruptcy allows those who can’t file for Chapter 7 or those who don’t want to give up their assets, to reduce their debt. Those who use this type of debt relief must make regular monthly payments for three to five years (depends on the court’s determination) to pay off a portion of their past debts. Unlike the payments prior to the bankruptcy filing, these will be affordable because they are based on the debtor’s income. If you need more information about bankruptcy or other debt relief options, contact us today.
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