When debt becomes overwhelming, individuals often find themselves feeling major stress. The harassment from bill collectors can be a big pain, especially when they are calling at home and on the job. Thankfully, there are options for Debt Forgiveness in Lake Worth FL. Seeking legal help to learn about the options is important for getting the best results.
What Is Debt Forgiveness?
There are many options for debt forgiveness in Lake Worth FL. Debt forgiveness means all or part of a person’s debts is wiped out. They are no longer responsible for the debt. The first step to getting help with debt forgiveness is scheduling an appointment with the lawyer. These lawyers work in debt consolidation, debt forgiveness, and bankruptcy.
The lawyer will carefully review the financial records of their client to determine the best form of recourse. They will contact the individual’s creditors to see what arrangments can be negotiated. Sometimes, creditors will work with the lawyer to consolidate the debt or offer forgiveness. If the lawyer has no success with debt forgiveness options, they can help their client with bankruptcy.
Types of Bankruptcy
There are a couple of different types of bankruptcy available, depending on the needs of the individual. A careful review of a person’s financial orders will be done to ensure the right bankruptcy is chosen. The following offers a description of the two types.
Chapter 13 bankruptcy is a type of bankruptcy that is ideal for those who are facing foreclosure on their home. This type requires a drawn up payment restructuring to be carried out. Payments are made each month and distributed among the creditors. Most people who are approved for Chapter 13 are given three to five years to pay off their debts. This type of bankruptcy stops all collection activity, including foreclosure.
Chapter 7 is a fast method of bankruptcy, but it may require some people to submit part of their assets for liquidation. If there are not enough assets to cover the costs of the debt, some of it may be absolved. Mean’s testing must be passed before approval is granted.
If you are interested in learning more about your options, browse our website. Call the office today to schedule a consultation.