If you face financial challenges and find yourself burdened with excessive credit card debt, medical bills and other types of expenses, you are not alone. According to the U.S. Bankruptcy Courts, over one million Americans filed for bankruptcy, and countless more are still struggling with debt. It can seem impossible to make ends meet when you are unable to make your mortgage payments and pay your monthly bills. At The Law Offices of Douglas J. Powell P.C., we understand how stressful it can be when you are forced to deal with mounting finances. Fortunately, there are many options for those who wish to find freedom from their debt.
Bankruptcy is one option for people who wish to start with a clean financial slate. Chapter 7 bankruptcy, otherwise known as liquidation bankruptcy, can lead to the discharge of most debts. In some cases, however, debtors are at risk of having property repossessed in order to repay creditors through this type of bankruptcy. Chapter 13 bankruptcy, on the other hand, allows the debtor to restructure their debt into manageable monthly payments they can afford. The plan gives the debtor three to five years to repay the debt to creditors.
There are debt reorganization and consolidation plans available for people who wish to bypass the bankruptcy process altogether. Debtors can partner with creditors with the goal of paying off the debt. Creditors may lower the interest rate or help reduce premiums in order to assist the debtor.
To find out more information on your debt relief options, please visit our page on bankruptcy.