Illness or divorce can leave a person’s finances in shambles. People who have always supported themselves and paid their bills are often embarrassed to admit that they can no longer do that. They keep hoping that they’ll be able to get more overtime or a raise, but the reality is that they just keep falling behind. The best thing that people can do is to speak with a lawyer who is knowledgeable about debt relief in Reading pa. The lawyer will be able to evaluate their overall legal and financial status and determine the best strategy for them. He will examine their overall income and the type of debts that they have.
If the person earns under the median income for their state, then they are a candidate for using Chapter 7 of the federal bankruptcy code. Once attorney Mitchell A. Sommers files for bankruptcy all the upsetting calls from bill collectors will stop. This alone can help brighten a person’s spirit. The court will appoint a bankruptcy trustee to sell all of the debtor’s assets and divide the proceeds among the creditors. Federal and state law protect a person’s home and car as well as the things that they need to make a living. Their can be exceptions to this. Their lawyer will review the process to ensure that only the correct items are sold. If the money from the sale doesn’t cover all of the debt, then the remainder is forgiven.
However, there are debts such as child support payments, tax liens, and student loans that are not included in the bankruptcy process. Therefore it’s important for a debtor who has these debts to work with a lawyer to design a comprehensive debt relief in Reading pa strategy. A person is only permitted to declare bankruptcy every seven years. If they will not be able to pay the current child support payments and student loans even after a Chapter 7 process, they may be worse off. Their lawyer will have to renegotiate their divorce settlement and enter into discussions with the student loan agencies. An attorney has the knowledge to negotiate many types of debt relief that will allow the person to move on in their life.
