Bankruptcy debt can pile up and cause a massive amount of stress in our daily lives. Sometimes the debt becomes so large that it is impossible to manage. Filing bankruptcy takes your case to court, where a judge and court trustee can examine your information, such as assets and liabilities, and decide whether to discharge the debts or not. It is a way for people with unmanageable debts to get a second chance with their finances. Although bankruptcy can provide mental relief, it does come with consequences that will last for several years.
Berry Law’s Lincoln bankruptcy attorneys can assist in filing bankruptcy and help you take back control of your life by removing debt. To schedule a consultation, call our business law attorneys today.
Filing Bankruptcy with a Lincoln Bankruptcy Attorney
There are two ways to file bankruptcy. The first is for you to file bankruptcy voluntarily. The second is to have creditors go to the court and ask for the court to declare bankruptcy for the debtor. Since 2005, when the laws were changed to make it more difficult to lessen the abuse of bankruptcy, there have been stricter guidelines to filing for bankruptcy. Due to the difficulty of filing bankruptcy by yourself, you may want to consider speaking with a Lincoln bankruptcy lawyer. A bankruptcy lawyer can help you navigate the filing process, as each type of bankruptcy has two sections of forms and each section contains over 25 forms, making it a formidable process for anyone trying to file alone.
Types of Bankruptcy
Understanding the nuances of bankruptcy is sometimes difficult. In fact, people are often surprised to learn that there are multiple types of bankruptcy. Although there are several different types of bankruptcy, but the most common types are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
Chapter 7 is a liquidation, allowing you to have a judgement from the court that will relieve you of your debt, selling off non-exempt property to repay some of the debt while allowing you to keep your exempt property. This is the most common type of bankruptcy. When determining exempt and non-except property, you must look at the necessity of the items. Non-Exempt property includes:
- Valuable items
- Family heirlooms
- Cash in your bank accounts and other investments
- Secondary vehicles
Exempt property is usually items that are essential to your wellbeing. These include:
- Primary vehicles
- Necessary clothing
- A portion of equity in the debtor’s home
- Public benefits
Chapter 13 Bankruptcy
Chapter 13 is an individual debt adjustment for those who do not wish to give up their property or do not qualify for Chapter 7. This usually occurs because their household income is too high. This involves paying off a portion of your debt and having the rest of the debt relieved. To file, your debt must:
- Not exceed a specific amount
- Be reviewed periodically
It is typically in your best interest to consult a bankruptcy attorney in Lincoln when determining the amount you should file for. You must have a 3 to 5 year repayment plan, and, upon successful completion, the remainder of the debt is relieved.
Work With a Lincoln Bankruptcy Attorney Today
If you believe that filing bankruptcy is the right course of action for you to take, contact Berry Law Firm today. Our team of experienced Lincoln bankruptcy lawyers will handle your case from beginning to end, making sure that you are taken care of during this difficult process.