Working with a Lawyer to Survive Bankruptcy Meriden CT Apr18

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Working with a Lawyer to Survive Bankruptcy Meriden CT

Today’s economy is a tough one for many people. They have lost their jobs. Others, working in the retail sector, have had their hours cut by 25 percent and lost health insurance benefits. Students are graduating hundreds of thousand of dollars in debt and can’t quite seem to gain traction in this struggling job market. Just about everyone has lost equity in their home and many can no longer afford it. It’s no wonder that Bankruptcy Meriden CT is more common than ever. While bad decisions many sometimes be the case for a bankruptcy filing, overwhelming medical bills are still the number one reason that people file for bankruptcy.

People often wait too long to discuss their finances with a qualified bankruptcy attorney. Out of shame and guilt, they do nothing. When they speak with an attorney he can help them choose which kind of bankruptcy is best for them. Chapter 7 is a complete dissolution of assets, which offers a fresh start. Often people are allowed to keep their home, furniture, car and retirement account. Chapter 13 is a reorganization and debt consolidation program. It can last up to 5 years. Debtors must give the bankruptcy trustee all money earned over that necessary to cover living expenses. The trustee will then distribute these to creditors.

Attorneys that advise on Bankruptcy Meriden CT can also help their clients with IRS problems. While IRS payments can’t be stopped with bankruptcy a good lawyer can contact the IRS and work out a payment plan. Sometimes they can even get the IRS to agree to forgive some of the taxes owed and accept a lower payment. If there aren’t too many creditors and the person still has a reliable income stream, the lawyer can contact these creditors and set up payment plans. This could be an alternative to a bankruptcy filing.

Desperate people are often up late at night watching television. This is where the scam artists in the debt consolidation industry prey upon them. The payments they collect never make it to the creditors. They have no power to stop debt collectors and people find themselves in a much worse situation than before. All because they were too afraid to see a lawyer and preferred an anonymous voice on the telephone.

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