Depressed and in Debt? A Bankruptcy Attorney in Lebanon Can Help

by | Nov 22, 2013 | Law

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When a person or business owner can no longer pay their monthly bills, they should immediately contact a bankruptcy attorney in Lebanon for help. Bankruptcy law is very complex, with several different options. A person’s income, assets, and debt level determines which option is best for them. So they need to prepare for their first appointment by gathering all of their tax information, making a detailed list of their assets and their worth, and listing all of their outstanding debt. Many debtors are so stressed and embarrassed, they have a hard time doing this. They should understand that the bankruptcy lawyer is there to help them and not judge them.

Chapter 7 bankruptcy is the most common bankruptcy in the United States. It is only available to people who earn less than the median income in their state. The court appoints a bankruptcy trustee to sell off any non-exempt assets and use the proceeds to pay off creditors. If the amount of revenue produced by selling the assets doesn’t cover all of the debts, the remaining amount of debt is discharged. State and federal laws protect certain assets from sale. The Bankruptcy attorney in Lebanon from the Law Offices of John M. Hyams will make sure that no protected assets are sold. The process usually takes under six months to complete. Not all debt can be cleared through the bankruptcy process this includes child support payments and student loans.

chapter 11 and chapter 13 bankruptcy filings do not immediately forgive personal or business debts. The person or business owner earns over the median income in their state and has the financial resources to live and pay back some of their debt. Under this process the court appoints a bankruptcy trustee who evaluates the debtor’s income, living expenses and debts. The trustee then establishes a budget for the person or business. The debtor’s lawyer will ensure that this is a fair budget. Any income or profit above that level is used to pay back creditors. This process can take from three to five years. Any debt remaining at the end of the process will be forgiven.