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Dealing with Growing Debt Legally through Bankruptcy

Most people accrue some debt in their lifetimes. Some debt is even considered beneficial because it allows you to build a solid credit history. As long as you can afford to pay the debts you’ve accumulated they shouldn’t be a problem.

However, there are times when even the most cost-conscious person accrues debts they cannot afford to pay. You might have been laid off from your job, exposed to illness, or in the midst of other circumstances that make you unable to meet your obligations.

By consulting and taking action with a bankruptcy lawyer Pasco County debtors like you might be able to resolve some or all of the debts in a timely and legal manner.

When you first consult with your bankruptcy lawyer in Pasco County area you’ll review your finances. Your attorney will want to know how much you earn and the value of your assets. They’ll use this information to determine your net worth.

Once that’s calculated, you’re attorney will determine what you owe in debt. If your net worth is less than what you owe to creditors, you could be eligible for filing for Chapter 7 bankruptcy, also known as liquidation bankruptcy. In this type of bankruptcy, most of your debts may be liquidated or forgiven. Certain types of debt including back taxes, unpaid owed child support, alimony, and student loans are not eligible to be discharged in bankruptcy.

If you are not eligible for a Chapter 7 or you can afford to pay some money toward your debt, you might be eligible for Chapter 13 bankruptcy. This type of filing lets you consolidate your debts and pay them off gradually over time.

Once you’ve filed for bankruptcy, creditors may no longer contact you or pursue collection actions against you. They could be held in contempt of court otherwise. Your attorney will handle communication with your creditors for you and ensure the protections provided by filing are upheld.

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