Nearly everyone has felt the effects of the recent economic downturns. The devaluation of the housing market left many homeowners with mortgages that were higher than the now-lower value of their homes. This housing bubble burst of the past few years robbed many hard working people of their only source of equity and the fact that it coincided with the recessionary business downturns just doubled its effect.
The number of households that have gone into financial crisis has skyrocketed and it is now widely understood that having money troubles is something that can beset any income level, no matter how carefully people have been working and saving for decades.
The good news for people who are in a state of financial insolvency is that there are options for getting out from under the mountain of personal debt. The two types of personal bankruptcies are Chapter 7 and Chapter 13 and both have their merits. For each debtor, the choice of which chapter to file will depend on their current and future projected income stream.
The Bankruptcy Attorneys in Fort Lauderdale are able to sit down with a person who is struggling with debt and talk to them about which of the personal bankruptcy case types may suit their situation.
Not all debts are eligible to be discharged in a Chapter 7 bankruptcy, but the majority of unsecured debts can be erased at the time the case is closed. Unsecured debts are usually credit card bills and some types of personal loans that were not taken out using collateral.
For debtors who would like to have all of their debts restructured, but keep paying on them with a revised payment schedule, the option of Chapter 13 bankruptcy may be the more fitting choice. This type of case is only practical if the person who is filing the case is able to depend on a steady income for the future. The income would be needed in order to meet the payment schedule set forth by the trustee of the case.
Only an experienced and licensed attorney can look at your debt situation and let you know whether filing for bankruptcy would be a wise choice for debt relief for you.
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