Debt relief can alleviate all of the stress an individual is suffering because of their overwhelming debt. Credit counseling offers a variety of options to eliminate money problems. Credit card debt settlement allows people to reduce their debt by paying back a portion of the original amount that is owed. A creditor will receive money for the debt, but will still have a small loss.
People can also choose to file bankruptcy as part of their debt relief in Lawrence, KS. Settling a debt will result in a 1099 being issued by the creditor for the money they did not receive and bankruptcy will not. Filing bankruptcy also stops harassing creditor calls immediately.
Debt Relief And Bankruptcy
- Bankruptcy can stop a home foreclosure and car repossession. If a person chooses debt settlement, a creditor can continue to pursue payment and a lawsuit against them. Bankruptcy provides the protection they need.
- Federal court supervises bankruptcy proceedings and creditors have to participate in bankruptcy.
- Debt that is forgiven in a bankruptcy is not taxable income.
Making a Decision
An experienced attorney will explain the options for debt relief in Lawrence, KS. The attorney will explain the differences between chapter 7 and chapter 13 bankruptcy. The amount of debt and income the person has will determine whether they should file chapter 7 or chapter 13 bankruptcy.
Chapter 7 Bankruptcy
When someone is looking for complete relief from their debt, chapter 7 bankruptcy will work great for them. Chapter 7 is a complete liquidation of any assets that are not exempt and will be discharged within three to four months. When someone has a limited amount of income and a large amount of unsecured debt, chapter 7 bankruptcy should definitely be considered.
Whenever debt is consuming your life, speaking with a bankruptcy attorney will eliminate a lot of the stress and questions you have. Joe Wittman has many years of experience representing bankruptcy clients and helping individuals eliminate their debt.