There are certain situations in life such as prolonged illness, loss of the job, etc. that can cripple the finances of an individual. As a result, such individuals may accumulate huge amounts of debts in order to meet their expenses that may be related to daily needs, treatment fees, bills, etc. However, the problem starts to surface up when individuals find themselves unable to repay their debt. Harassing calls along with threats from creditors become a common thing and distress the individual.
In case, an individual struggle to make payments to the creditors and it is almost impractical to clear off the debts, bankruptcy becomes the most viable solution. However, it is advisable for individuals to seek the help of a professional who can explore and suggest all the feasible ways to resolve the individual’s financial issues before declaring bankruptcy as the last resort. In the USA, many Bankruptcy Lawyers in Colorado are regarded as the best and are well-versed in handling consumer bankruptcies.
What Exactly is Bankruptcy?
Bankruptcy is a legal process through which a person acquires the status of being bankrupt. In general, the individual has to file the case in a bankruptcy court. There are two types of consumer bankruptcies namely, Chapter 13 and Chapter 7. An Individual needs to determine the bankruptcy type, which is ideal according to his/her financial conditions.
During the bankruptcy process, the court takes the charge to devise a way through which the debtor can get rid of his/her debts. Moreover, depending upon the type of bankruptcy, it is possible for individuals to discharge some or a major portion of their outstanding debts.
Overview of Chapter 13 and Chapter 7
Chapter 13 is an ideal option for debtors who have certain income sources that are sufficient to make the repayments. The court orders the individual or some authority to prepare a repayment plan that is stretched along a time period of 3 to 5 years. In some cases, a certain portion of the debt is discharged by the court to make the new repayment plan realistic.
Pertaining to Chapter 7, this type of bankruptcy can discharge most of the individual’s debt except for certain types including student loan and alimony. However, there are certain parameters for a person to become eligible for Chapter 7 bankruptcy.
Benefits of Filing for Bankruptcy
Acting as the last option, bankruptcy can give a fresh financial start to debtors and allow them to lead a better life in the future. However, there are various other benefits of filing for the legal status of bankrupt that are as follows:
- All the creditors and lenders immediately get banned by the court from making any type of contact with the debtor
- Prevent foreclosures of assets such as house and vehicles
- Restrict creditors from making any kind of wage garnishments
- Discharge certain types of bills such as ones occurring from medical treatment
- Elimination of credit card debt
Why Hire a Lawyer?
While it’s possible for the individual to take decisions and file for the bankruptcy completely on his own, hiring a professional lawyer is highly recommended. As the process of getting the legal status is complex and knowledge of associated laws is a must, it is good to assign the responsibility to a professional lawyer who exclusively handles consumer bankruptcy cases. Taking reference of leading Bankruptcy Lawyers in Colorado, following are some of the key highlights of a well-established lawyer:
- Genuine and honest advice
- Review and discuss all the possible options other than bankruptcy
- Works specifically to protect the interests of the client
- Handles all the paperwork
- Provides emotional support throughout the legal proceedings
Individuals who are hit hard by financial difficulties often found themselves stranded with no hope of getting out of their drastic situation. However, bankruptcy is the best possible way to end up the extreme financial suffering and get the opportunity to start things from scratch. However, while making the decision to file for the legal status, it is important to seek the help of an expert who offers quality guidance and sound advice.