When an individual is drowning in debt, it is one of the most stressful times in their lives. Relief can be found by contacting a bankruptcy lawyer in Mooresville, NC. The threat of foreclosure on a home can be stopped through bankruptcy proceedings. Filing bankruptcy does not always necessarily mean that an individual will lose their house, car and everything they own. There are various bankruptcies to choose from, and only an experienced bankruptcy lawyer will know which one will work best for that individual. There are exemptions in a bankruptcy that a lawyer can explain and allow the individual to determine what is or is not exempt for the process.
Chapter 7 bankruptcy will assign a trustee to liquidate the assets the individual has. This bankruptcy will completely wipe out the debt. There are several things that cannot be wiped out such as child support, alimony, certain taxes, student loans and a few other debts. These debts will still have to be paid. Any unsecured debt as credit cards will be eliminated as well as mortgage and car payments. This means the filing individual will not have remaining assets in their possession.
Chapter 13 bankruptcy is different because it permits the individual to keep a variety of items and change the terms of the repayment of those debts. It also gives the individual a chance to catch up on late mortgage and car payments. This type of bankruptcy can stop creditors from harassing an individual and stop foreclosure proceedings on a home if the individual doesn’t want to lose their house. Only a bankruptcy lawyer in Mooresville, NC can explain which bankruptcy will work after reviewing the debt and the assets the individual has.
Secured debts such as a car or a home can be reaffirmed and paid on a timely basis. The catch with either bankruptcy is, once the bankruptcy has been discharged, the individual cannot file bankruptcy again for six years. If the individual is not going to be able to pay the mortgage even after filing for bankruptcy, they may be better to let the house be included in the bankruptcy. Speak with Lake Law Office PLLC and get the sound legal advice that is needed to proceed with a bankruptcy.