People are often ashamed when they can no longer pay their debts each month. As a result they keep putting off seeing one of the Aurora Bankruptcy Attorneys. It’s not until they find their wages garnished or their car repossessed that they find the desperate courage to ask for help. Unfortunately this means that they’ve made the lawyer’s job harder and they may lose assets that they didn’t need to lose. As hard as it is, a debtor has to make a list of all their income and assets along with their debts and see a bankruptcy lawyer as soon as possible.
This will give the attorney the best chance at protecting any assets that the debtor still has. A lawyer will look at the different types of debt that a person has. Credit card debt is unsecured and can be part of the bankruptcy process. Car loans and home mortgages are secured debt and are generally not part of the bankruptcy process if the person is current on their payments. Some debt such as student loans and child support payments will not be forgiven during bankruptcy. Most debtors want to file for Chapter 7 bankruptcy. This option is only available to a person that makes under the median income in their state. If they qualify, then the lawyer for Ledford and Wu will begin the filing process.
Filing for bankruptcy is a complicated process that debtors should not attempt on their own. Their creditors will have lawyers aggressively looking out for their interests and debtors should do the same. Under a Chapter 7 bankruptcy filing the court appoints a bankruptcy trustee. It’s their job to find all of the debtors assets and sell them. Both federal and state law prevent certain assets from being sold. This usually includes a house, car, basic clothing and the tools that a person needs to make a living. Aurora Bankruptcy Attorneys will make sure that only non-exempt assets are sold. Once the sale is complete, the proceeds are divided among the creditors and the process is over. The debtor is free to begin their life over. The process usually takes under six months.