Aug. 7, 2012
-- Many people understand that going through the steps of declaring bankruptcy can be a method of getting eliminating all their debt. While it is true that bankruptcy can be quite a good financial strategy for individuals with some types of debts, you should know some fundamental details of bankruptcy before filing. A Fairfax Bankruptcy Lawyer can help with inquiries you might have.
You will find three main forms of bankruptcy, Chapter 7, 11, and 13. Chapter 7 Bankruptcy was created to help individuals who require to completely erase their debts. Chapter 11 is intended for businesses. Chapter 13 is intended for those who will need to restructure their debts. A Fairfax Bankruptcy Attorney can assist you to determine what form of bankruptcy you are eligible for.
Additionally, it is vital that you understand what forms of debt could be wiped out or restructured by filing. Generally, bankruptcy will allow you to erase unsecured debts, like credit cards and health-related debt. Unsecured debt that is registered during a Chapter 7 bankruptcy is generally completely discharged without needing to surrender any assets.
Secured debts, like mortgage debt and auto loans, are more complicated for getting discharged bankruptcy. Very often, the bankruptcy court is likely to make a borrower surrender the asset that the loan is secured to in order to discharge the debt. This is when an experienced bankruptcy lawyer will help the most. A Fairfax Bankruptcy Attorney will be able to assist you determine whether these assets are worth fighting for, and if they are, they will be able to make a case to the judge.
Finally, there are a few types of debts which are very difficult to discharge in a bankruptcy. Student loan debt, tax liens, and child support payments are all areas where an attorney can assist. Talk to a Fairfax Bankruptcy Attorney now to determine whether declaring bankruptcy can assist you with your debt problems. Visit http://firstpointlaw.com
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