Most common types of bankruptcies filed are under chapter 7 or chapter 13. This article explains the differences between the two regulations. To better understand the process, it is crucial to hire a reputable bankruptcy attorney in Fort Worth.
When to file
In modern society, it is common to find many people trapped in a huge stack of debt. The reason is the ease of access to credit over the past. Nowadays, folks often live with the continuous bombardment of tantalizing advertisements telling how easy it is to get a loan.
They are often attracted to these advertisements, and the result is that most individuals land in a situation where their monthly expenses are higher than their income, which results in an individual becoming insolvent. Hiring a bankruptcy attorney like David S. Kohm & Associates in Fort Worth is a must at this point.
Debt equals detriment
Debt can have devastating consequences. It can affect people both financially and psychologically, which is why it is crucial to take prompt action to solve this problem.
There are ways to negotiate, consolidate, or seek help from a debt management company. But if a person feels that it is too late to solve this type of financial mess, they must never get discouraged; there is still a way out.
In such situations, filing for bankruptcy is often the most reasonable option.
Congress has adopted something called the “Bankruptcy Code”, which is designed to help those imprisoned with indebtedness and who need help to get a fresh start in life. For many people, it is often an embarrassing situation to file for bankruptcy. They feel uncomfortable when it comes to exercising their right to break free from the debt they have incurred.
However, this can be their once-in-a-lifetime chance to get a new lease on life. Although a recent amendment of the law made it much more difficult to exercise this right, it is still possible. Of course, the procedure has been lengthened compared to the past; however, there are specialized law firms and counseling centers to help folks exercise their constitutional right.
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