Many people get loans and credit cards to afford the things they need in life, such as a car or home. These people work hard to stay ahead of their bills and debts. Unfortunately, one illness, emergency, or loss of work can throw all of that into turmoil. These things can quickly make it difficult to keep up with payments on these bills and debts. When it gets too overwhelming, Filing Bankruptcy in Wellington FL may be an option.
Why Choose Bankruptcy?
When it becomes difficult to pay debts on time, late fees and interest rates are added to the debt. This makes it more difficult to keep up. Before long, creditors are calling and harassing debtors for their money. These difficulties also lowers a person’s credit rating. A low credit rating makes it difficult to get further credit. It can also impact the ability to get a new job or even rent a home. Filing Bankruptcy in Wellington FL provides an option to stop this from getting worse.
Chapter 13 Bankruptcy
For those still working but cannot keep up with their debt, Chapter 13 bankruptcy may be the best option. This type of bankruptcy allows a debtor to restructure their debt. All debt and income information is collected and examined. An affordable payment plan is then created to pay down all debt over the next three to five years. At the end of this term, any remaining debt can be discharged. This provides debtors the opportunity to gain control of their finances and begin again.
Chapter 7 Bankruptcy
This type of bankruptcy is an option for those with little or no income. Similar to the chapter 13, all income and debt is collected and examined. However, this type of bankruptcy differs in many ways. If the filer has non-exempt property, it will be sold to pay off as much of their debt as possible. At the end of the proceedings, any remaining debt is discharged. It allows these debtors to get a clean slate and take control of their financial future.
Filing for bankruptcy is an option for those who are facing severe financial difficulties. However, it is a legal proceeding that can be quite complicated. Hiring an attorney is often recommended to ensure the case proceeds properly. Browse our website for more information about bankruptcy or to have the case evaluated.