Many people will confront some serious financial problems at some point in their lives. When these tough times do arrive, the most important thing that the individual can do is to remain calm. Panicking and "burying your head in the sand" is the worst way to handle financial problems. Ignoring the problem will not make it go away. You have to appropriately address your debts in a way that allows you to move on at a later date.
Bankruptcy is a common choice for people who are dealing with sizable amounts of debt. But there isn't a blanket bankruptcy filing that will work for everyone. There are are two common filings, though, that can prove beneficial to people in debt: Chapter 7 and Chapter 13.
Chapter 7 is a common filing that enables the filer to discharge their debts. There is also a liquidation process that accompanies a Chapter 7 bankruptcy, meaning that you will lose some assets in the bankruptcy. However, certain exemptions can be utilized to allow you to protect and keep certain assets. Chapter 7 can be done relatively quickly, too.
Chapter 13, meanwhile, is a process by which the in-debt individual can reorganize their debts and create a plan for paying back their creditors. The timetable for paying them back under a Chapter 13 filing is three or five years.
With either filing, their will be qualifications that have to be met in order to proceed. If you run into problems, you should talk to an experienced attorney -- and Vance P. Truman is one such lawyer who can help you strive for a fresh lease on your financial life.