Those dealing with financial distress often feel overwhelmed with the amount of debts they owe. When bill collectors are constantly calling and threatening further action, many people do not know how to get help for their situation. Calling a south jersey law firm can allow people to get the help they need so they can overcome their debts once and for all. Meeting with a lawyer can also allow people to weigh their options on filing for bankruptcy.

There are a couple of different bankruptcy options afforded to those who are dealing with more debt than they can afford. One option is to file under chapter 7. In this type of bankruptcy, individuals and couples must successfully pass a Mean’s Test. This test measures their income to ensure it meets specific requirements. If the test is passed, a court-appointed trustee is placed over the case and works to liquefy excess assets to pay down debts. If no non-essential property is owned, the trustee has the power to absolve certain debts. Filing for chapter 7 is the fastest option for settling debt through bankruptcy, since debts can be settled in six months or less.

There is also the option of filing for chapter 13. This option takes longer to settle and is primarily for those who have secured debts. Chapter 13 can help homeowners to avoid foreclosure and can assist those with car loans who are facing repossession. Chapter 13 requires individuals pay down their debts by paying a monthly payment through the court. This amount is split among creditors. Over a period of two to five years, the owed debts can be paid down and the person filing can finally be free of debt.

To learn which type will best benefit your needs, it can help to meet with a lawyer. A lawyer can go over all of your financial records and the bills you owe to make a determination. Through bankruptcy, debts can be absolved or paid down so they are no longer creating a burden. For more information, contact a bankruptcy lawyer and schedule an appointment for a consultation.

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