Financial hardship can stop a person from making any progress in life. There is help for those who owe debt of $10,000 or more. Interest rates, only paying the minimum owed and not being able to catch up on late payments is the easiest way to slip into uncontrollable debt. Bankruptcy is a sensible way to escape this problem.
Bankruptcy Gives Debtors a Fresh Start
Filing for bankruptcy is a big decision to make, but it’s a tool that helps people ease their way out of debt in a feasible way. Bankruptcy applicants are granted the opportunity to pay off debt based on their ability to pay. Interest is eliminated for most. A bankruptcy attorney in Keller, TX offers services to make the process run smoothly.
Bankruptcy has services for individuals and businesses. Chapter 13 bankruptcy is tailored to the wage earner. Those in debt who are earning an average income are given the chance to pay it off in a manner that is in agreement with their income.
For chapter 13, debtors undertake a repayment plan making installments to creditors over the course of three to five years. If the debtor’s income is below a certain amount, payment plans last for three years. If income is over a certain amount, the plan lasts for five years. Interest is canceled and any left over debt is forgiven when the payment period is over.
In no way can creditors continue to collect debt after the payment plan period is over. This is a feature many benefit from. Paying creditors through the original policies allows them to raise interest and collect on debt as long as they please.
Bankruptcy for Businesses
Chapter 11 is the bankruptcy plan that most business owners in financial trouble prefer. This plan is for business owners who want to keep their operation open. Under it, business debtors reorganize their debts so they can be paid over time as revenue increases. The amount owed in debt can be decreased, or an extension can be given on the time to pay.
A bankruptcy attorney in Keller, TX at the Law Firm of David S. Kohm provides a great deal of help for bankruptcy applicants. There is a lot of paperwork to fill out with some confusing questions. Attorneys make sure the paperwork is filled out correctly so clients can get all the benefits that are available.
