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
There are more advantages to filing bankruptcy than to debt settlement. Filing chapter 7 or chapter 13 bankruptcy has advantages such as:
- 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. Business Name has many years of experience representing bankruptcy clients and helping individuals eliminate their debt.
