Many people often find themselves in tough financial situations. Massive debt has a tendency to creep up on you. Once your debt grows and gets out of hand you have a limited number of options available. Most people turn to bankruptcy in hopes that it’ll eliminate some or all of their debt. If this is the option you choose, you’ll need to speak with a Bankruptcy Attorney in Cornelius NC.
Speaking with an attorney will help you develop a more informed perspective on bankruptcy. The common misconception is that bankruptcy erases your debt and that there are no consequences. Unfortunately, bankruptcy doesn’t erase all debt.
Bankruptcy is mostly meant to erase unsecured debt. Unsecured debt includes things such as credit card debt, phone bills, medical bills and even some student loans. These are all types of debt that can prevent creditors from legally repossessing your property. Although you’re obligated to pay back the money you owe a lien can’t be placed against you.
That being said, bankruptcy cannot get rid of secured debt. Examples of secured debt include auto and some personal loans, mortgages and also some student loans. With these types of debt your creditors can legally repossess your property in order to cover the money you owe. With certain student loans, your creditors may be able to legally garnish your wages. Visit Lakelawpllc.com for more information about secured and unsecured debt.
Make no mistake, bankruptcy isn’t something that you’re automatically allowed to exercise – it’s not a right. You’ll have to file a bankruptcy claim with the courts and meet with a judge. Your creditors will also be notified about your attempt to escape your debt, and they have a right to be heard as well. If the courts determine your situation doesn’t allow for bankruptcy, you might get stuck with your debt.
Speak with a Bankruptcy Attorney in Cornelius NC in order to get more details about this process. Again, bankruptcy isn’t for everybody. There are certain types of debt that can and cannot be erased. If you have a large amount of secured debt, there’s a good chance you’ll be required to pay it back; however, your creditors may offer to adjust your payment plans.