Debt is just a part of life. If you want to own a home or buy a car, you will most likely have to take on some debt. If you own a business, you probably had to take out a sizable loan to get it started. Most people also have at least one credit card, which can be another source of significant debt. Having debt is not necessarily a problem, as long as you have enough income to meet your financial obligations.
When your debt grows beyond your ability to pay, it’s not the end of the world. The U.S. Bankruptcy Code offers a number of options for people and businesses with crushing debt, and, if you find yourself in that situation, it’s smart to take advantage of those options.
Nahrgang & Associates, P.C. is Montgomery County, PA’s trusted bankruptcy law firm, and today, we would like to give you some basic information about bankruptcy so you can be better informed about your debt.
Should I Declare Bankruptcy?
A free initial consultation will help us determine the best option for you and, at a minimum, give you peace of mind. . If any of the following apply to you, you should give us a call:
· Paying bills late
· Borrowing yet more money to meet the payments of outstanding debt.
· Only making the minimum required payments on your credit card bills and invoices
· Being over your credit card spending limit
· Being forced to pay your bills with money that was reserved for other things such as savings or retirement.
· Putting off medical treatments because you can’t afford them
· You are getting calls from collection agents
Once you start seeing these signs, it’s only a matter of time before your debt grows out of your control. Whether or not you are considering bankruptcy as an option, it’s a good idea to speak with a bankruptcy attorney about your situation. Your bankruptcy lawyer can advise you about the different types of bankruptcies and discuss other options that are alternatives to bankruptcy..
The most common bankruptcies for individuals are:
· Chapter 7 (Liquidation) – While the title of the Chapter is liquidation, most consumer bankruptcies are determined to be No Asset as most consumer assets are exempt and protected. If that Chapter is right for you, you will eliminate most debt without making any payments and will keep your important assets such as your house, cars, and retirement accounts.
· Chapter 13 (Debt Adjustment) – This Chapter is commonly used for delinquent mortgage, car, or tax debt. It consists of a Plan to repay those delinquencies over 3 or 5 years. It is also used for those who have unsecured debt such as credit cards, but have too much disposable income to file Chapter 7.
There are also two other types of reorganization: Chapter 11, which is generally used for corporations rather than for individuals, and Chapter 12, which is reserved for certain family farmers and family fisherman.
Income level, assets, and other factors will all affect the types of bankruptcies that can be filed. If you’re having issues related to your debt, the best thing to do is speak to a good bankruptcy attorney as soon as possible.
If you’re looking for a bankruptcy lawyer in Montgomery County, PA and surrounding communities can come to Nahrgang & Associates, P.C. with any questions they have about bankruptcy. At your free initial consultation, our bankruptcy lawyers will give you all the information you need to make an educated decision about your future. You don’t have to let your debt get on top of you. Get in touch with us today to find out more about your options.