If you are drowned in debt and wondering, how do I get out of debt; you can approach either a debt settlement company, or a bankruptcy attorney to get debt relief. However, there are many things that a debt settlement company won’t tell you, like the creditors may not accept the settlement offer, or may not even want to work with the settlement company. The debt settlement company may ask you to stop making payments while it works with creditors. This can increase your debt if the creditor does not agree. Additionally, late payments will also negatively impact your score.

Despite your best efforts, bankruptcy can be the only way out in many circumstances wherein you have to decide how do I get out of debt. However, filing for bankruptcy is quite emotional, and you also need to be aware of the procedure. This is where experienced bankruptcy lawyers at the Recovery Law Group can be of help to you. When you hire Recovery Law Group’s bankruptcy attorney Austin, they will declare to the court that you are not in a position to pay your debts. A court-appointed trustee will inspect your assets and liabilities to understand which debts can be discharged. Once the court is assured of your inability to pay your debts, you can declare bankruptcy.

Filing for bankruptcy under Chapter 7 or Chapter 13

When you hire bankruptcy attorney in Austin and declare bankruptcy, all collection efforts of the creditors must stop, including foreclosure, repossession, and wage garnishment. However, certain loans are not discharged under bankruptcy, such as government fines, child support and alimony, and student loan debt.

Your bankruptcy attorney in Austin can file for bankruptcy either under Chapter 7, or Chapter 13, to resolve your worries about how do I get out of debt.

Under Chapter 7 bankruptcy, the court will sell all non-exempt property, to pay back your creditors, and any remaining debt is discharged. Though bankruptcy is discharged within 3 to 6 months, the downside of Chapter 7 bankruptcy is that you might have to lose your home and car if these are not exempt.

Chapter 13 bankruptcy will allow you to repay your debt over a period of 3 to 5 years, either some portion, or the entire amount. When you hire bankruptcy attorney Austin and they file for bankruptcy under Chapter 13, your home and car can be protected, and you may be able to pay even previously due mortgage payments through the repayment plan.

Which bankruptcy to file for?

So, if you are looking forward to repaying the debt in a structured way, Chapter 13 bankruptcy is the way to go; but if you want to totally wipe off your debts, your bankruptcy attorney in Austin may suggest you to file for bankruptcy under Chapter 7.

Saving you from creditors' harassment

Additionally, when you hire bankruptcy attorney Austin through Recovery Law Group, they will ensure that there are no debtor harassments, such as phone calls, evictions, judgments, foreclosure, etc. In case any creditor continues to harass you, Recovery Law Group will take action against them on your behalf. This includes collection of damages in case the creditor violates the law during debt collection.

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RECOVERY LAW GROUP

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