In these economic times it’s no surprise that people are struggling. The loss of a job, declining income and a failing business can put a person in a dire financial situation and they must turn to someone to help them get debt relief and stop the collection actions of their creditors.
A Delaware bankruptcy attorney can be a savior in when a person’s debts have become too much to handle. They will be able to advice the debtor which bankruptcy structure will reduce and even eliminate their debts.
For the individual there are two structures which are the most typical, Chapter 7 and Chapter 13. And the one that will work best depends on how many assets a person has and if they are able to pay creditors.
The most common debt relief structure recommended by bankruptcy attorneys is Chapter 7 also known as liquidation. Under this plan, the indebted business or individual must sell of their assets in order to pay creditors. Every state has different property exceptions, but they typically include homes.
Chapter 13 is a reorganization plan where the indebted individual and their creditors agree to a repayment plan within a specified time frame. Some of the debts are dischargeable and this structure can prevent foreclosure while in bankruptcy.
The decision to declare bankruptcy should be carefully considered. A bankruptcy attorney can examine a person’s financial situation and decide which structure will meet their needs and allow them to make a new start.