When a person’s finances are out of control, they can find it difficult to get out of debt. Even paying the minimum payments on credit cards and other types of debt can lead to difficulty. For many people, the debt becomes more than they can bare so they try to ignore it and hope it goes away. Unfortunately, ignoring debt will only make it worse and could lead to further collection activity. It behooves a person to seek help from a bankruptcy lawyer in Milwaukee WI. A Bankruptcy Lawyer can look over a person’s financial records and help them determine what course of action they need to take so they can be free of their debt.
Those who meet with a lawyer will need to make sure they bring copies of their pay stubs, tax records, and information on all of the debts they owe. A lawyer will give a person two types of bankruptcy options and one will be chosen depending on their financial needs. The option a person is given will depend on the amount of debt they owe and the types of assets they own.
Those who have mostly unsecured debts, such as credit cards, will most likely choose chapter 7. Chapter 7 is a type of bankruptcy that allows a person to settle their debt in six months or less. A court-appointed trustee comes in and works to absolve the person’s debts or pay them off through the liquidation of non-essential property. If such properties are not owned, the trustee can offer debt forgiveness so the debts are settled within six months.
Should a person have secured debts and is facing foreclosure or the loss of their vehicle through repossession, the Bankruptcy Lawyer in Milwaukee WI can offer chapter 13 bankruptcy. This type of bankruptcy allows a person’s debt to be settled in three to five years. When the bankruptcy is put into effect, all collection activity stops.
A lawyer can help a person determine what type of bankruptcy will be best for their financial situation. For more information on hiring a lawyer for bankruptcy.
