Bankruptcy Can Be Avoided If Expert Help Is Sought

Bankruptcy Can Be Avoided If Expert Help Is Sought

The one thing that most people absolutely hate about drowning in debt and that is the thought of failing to meet expectations. Those who have juggled their money around to try to pay everyone who is demanding payment have often failed to meet the deadlines of creditors. When this happens they often feel too pressurized and want to seek out the services of a bankruptcy attorney so that they can get some relief from the constant harassment. A bankruptcy lawyer will certainly be capable of guiding the debtor through all the legal matters concerned with the filing.The debt could be anything from credit cards to a company business which has sales lower than the debts of the company. Whichever it is, it is just as devastating for the person or company who is trying to get out from under all the debt. Indeed, many large conglomerates found themselves in debt to the tune of many billions of dollars in recent times and these were tried and tested companies who are familiar household names.Indeed, if these companies were not bailed out by the government, some of them would have disappeared forever and the face of business in the US would have been changed inexorably. If large and experienced companies can get in this kind of trouble, what then of the man in the street with his debt which looks overwhelming?The government did not forget the ordinary man either. Because of some extortionate credit card rates, many average people found themselves slipping further and further behind with their payments. Some went as far as to take out other credit cards to pay off these debts and this is where the problems really began.However, the provisos that came in to help these people, although not easy, really wrapped the knuckles of companies who gave out credit cards too easily. Chapter 7 was introduced to alleviate stress on people who were about to lose their homes because of this kind of debt.Usually the court orders a means test on the debtor if he has mostly credit card debts. If his income is less than his reasonable outgoing expenditures, and this is where life can get very tough, the credit card is cancelled out there and then. If he has some excess, Chapter 13 is invoked where he will have all his debts amalgamated into one sum. The court will then work out one sum to be paid each month for a set period of time. The beauty of this plan though is that the debtor will not have any more harassment or letters from the creditors, neither will any penalties be applied to the debt for late payments.Although this may look like the debtor is getting off lightly, he will probably have a zero credit rating from then on and people rarely use cash for anything these days. He will also only be availed of this service every seven years or so and this then makes life difficult in yet another way for sure.

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