Neither form of debt relief is the perfect answer for everyone but indebted consumers are increasingly finding that debt settlement can provide optimal results without the disadvantages of filing bankruptcy. Be sure to consult a professional with experience in both solutions to determine which one is the best for you.
It is usually cited that the intent of the bankruptcy system is to "present a refreshing commence for the truthful but unfortunate debtor." Getting honest while in the bankruptcy process is incredibly essential and there are considerable effects for the dishonest debtor.
Bankruptcy court judges in Westchester and Hudson Valley (Southern District New York) has not yet decided whether they will follow the removal of Judge Eisenberg down completely unsecured loans in Chapter 7 cases. In fact, the two bankruptcy cases in the Court of Appeal imposed a lien stripping in Chapter 7 cases.
Persons in serious financial difficulty may be at the point that bankruptcy is the only answer. If a person has lost a major portion of their income or owes debts that cannot be paid, then this may be the best financial solution. There are some serious consequences to be considered before filing, so make sure that you speak with a professional before proceeding.
Are you facing an overwhelming amount of financial challenges following a divorce? Couples divorce every day because of financial problems, and unfortunately, many times these financial issues continue to create problems even after the divorce is finalized. Bankruptcy is one such financial problem that many divorced couples face after dissolution papers have been finalized. If you are overwhelmed by debts incurred during your marriage or suddenly find yourself unable to pay on outstanding loan obligations, a Chesapeake bankruptcy attorney can help.
Before all this takes place though there's a need for a "means test." This test was added to bankruptcy code to ensure that people declaring bankruptcy under Chapter 7 bankruptcy are in fact worthy of filing. This involves an intense study of a debtor's income over the span of six months time. This is then compared to the income on a yearly basis. After this is successfully done the debtors salary is compared to other median household incomes of similar social standings. This test is designed to evaluate if one is qualified for Chapter 7 bankruptcy or if they fit into another chapter like Chapter 13.
Your first step is to hire a lawyer that is right for your situation. The Seattle area has a decent amount of good bankruptcy attorneys ready to help clients manage their debts, but there are a few things you should look for in an attorney. A good fit is not only about competency, but also about compatibility. If you are a no-nonsense kind of person who just needs to get the job done, you probably need to find someone like-minded. On the other hand, if you feel that you need to be talked through the process and have all of the information available, you should find an attorney who can easily transition between legal jargon and layman's terms. Regardless of what you need from an attorney, you can probably find it as long as you do enough research. Reading through an attorney's website, as well as consumer reviews on outside sites, can help you make your decision.