Struggling with debt that you cannot pay is not only frustrating and stressful it can also cause health problems. Some people develop high blood pressure, insomnia, and other health problems because of the stress caused by debt problems. In order to stop the stress, the person must find a permanent solution to debt problems. Bankruptcy provides a permanent solution to debt problems and allows the debtor to have a fresh start to recover from a financial crisis. However, most people worry about how long it will take to complete a bankruptcy.
We understand that you want to find a solution to debt problems that is quick so you can find relief from your stress. The length of time it takes to complete a bankruptcy depends on several factors. My office offers free bankruptcy consultations so that you can get answers to your bankruptcy questions and find a solution to debt problems.
Finding a Solution to Debt Problems
In most cases, individuals file under Chapter 13 or Chapter 7 of the Bankruptcy Code. Several factors determine what chapter of bankruptcy will be your best solution to debt problems. Because each case is different, your case may have other factors in addition to these:
- Type of debts
- Prior financial history
Filing a Chapter 7 Case as a Solution to Debt Problems
In order to qualify to obtain a discharge under Chapter 7, the first hurdle to cross is the income test. The Means Test compares your income to the median income for a family of the same size in the same county as your residence. If your income is below the median income or your disposable monthly income after expenses is below a certain level, you can proceed to file a Chapter 7 case.
Most Chapter 7 cases are considered “no asset” cases. In a no asset case, the trustee does not liquidate any assets to pay creditors. A typical no asset Chapter 7 case is completed within four to six months from the date of filing.
Filing a Chapter 13 Case as a Solution to Debt Problems
If your income is above the median income, you can file a Chapter 13 bankruptcy case. There could be other reasons for filing a Chapter 13 bankruptcy other than your income level such as protecting assets from liquidation, repaying non-dischargeable debts over time; or stopping a foreclosure or repossession. Most Chapter 13 bankruptcy plans take 60 months to complete; however, in some cases, the term may only be 36 months.
While this sounds like a long time, a Chapter 13 reorganization allows the debtor to discharge unsecured debts for a fraction of what is owed on the accounts while protecting the debtor’s assets from creditors and the court. Once the bankruptcy plan is completed, the debtor is in a much better financial position than before the bankruptcy.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on helping clients find an affordable solution to their debt problems. We represent clients in Burlington County and throughout South Jersey.
Contact our office at 609-267-5297 to schedule your free bankruptcy consultation or use our online contact form. One of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free bankruptcy consultation with Travis J. Richards.
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