Many Americans live from paycheck to paycheck. All it takes is one serious illness to wreak havoc with their finances. Not only do they have huge medical bills to pay, they often find that they can’t work. When they have used up their sick days and vacation leave, they are often fired. Because they can’t work, they can’t collect unemployment. There are almost no government programs that will help these people. Often speaking with a Bankruptcy Lawyer in Huntersville, NC is their only strategy.
In preparation for their first visit with the lawyer, they need to make a list of all of their assets and debts. People who are filing for bankruptcy don’t get to pick and choose which debts are included in the process. In many states a person’s primary residence, their car, clothing, and the equipment they need to make a living are exempt. However, this can vary with the type of bankruptcy application, the state in which bankruptcy is declared and the status of the payments on the asset. That’s why it’s important to work with a lawyer and to see them as soon as needed.
Many debtors hope that life will get better after they have recovered from their illness. However, the mountain of debt is too great for them to overcome. An attorney from the Lake Law Office PLLC will explain the difference between a Chapter 7 and Chapter 13 bankruptcy filing. If the person makes under the median wage for the state in which they live, they can use Chapter 7. The court-appointed bankruptcy trustee will sell off all of the non-protected assets and then distribute the proceeds to the creditors. The remaining debt is forgiven the person is now free to resume their life. This takes between three and six months.People who make over the median income in their state usually have to use Chapter 13 to file for bankruptcy. In this case the trustee evaluates the debtor’s income and living expenses. The debtor is then put on a budget and the remaining funds are used to pay off creditors each month. This can last up to five years. Once this program has been completed all of the remaining debt is forgiven.