| By :
Mark Etinger
Sometimes life just isn't fair. Everything seems to be going fine and then you get the rug pulled out from under your feet. When you don't land on your feet, it's okay. Bankruptcy is not the end of the line. The reason bankruptcy laws exist- and also the reason they are adjusted- is because honest, hard-working people are sometimes left with unimaginable debt because of unforeseen occurrences. It is especially relevant today. The job market is seeing some turnaround but when the economy was hit, many people lost their jobs. Unemployment spread like wildfire and it became an epidemic. Home foreclosures were unstoppable. Picking up the pieces, though, is not something that can be done alone. Chapter 7 and Chapter 13 law are designed to regulate what is owed and what is lost between the party filing bankruptcy and the creditors. They are an order of relief that protects your property and ownership outside of the bankruptcy proceedings. In other words, creditors cannot harass you once the decisions have been made. Chapter 7 law is a liquidation bankruptcy law. Basically, any assets that are not exempt under the law are sold and the proceeds are distributed accordingly to creditors. The two laws have different requirements for qualification but they are both intended to help restructure finances so you're not homeless and struggling. Chapter 7 law can be filed regardless of the amount of debt. Chapter 13law can be filed only if you have a regular income with unsecured debts under $269,250 and secured debts under $807,750. A bankruptcy lawyer can consult you on which is the most appropriate path towards financial recovery. After all, some or all of your assets can be lost. With an experienced bankruptcy and foreclosure lawyer you can at least fight to maintain certain assets, such as your home. Don't feel pressured by creditors anymore! Hiring a lawyer is a better way to deal with debt. When you schedule your consultation be sure you have information that can help with your case. Creditor's names, addresses and the amount they are owed should be organized. You can get a copy of the form and fill it out as well. Make sure you go through it and understand the exemptions. Ask if you are unsure about anything. You can then file the bankruptcy with the closest federal court. From there on it is up to the court to make a decision. After this point you are absolved of the majority of the mess. What you keep is what the court has permitted and the creditors must accept the court's decision.
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