For qualifying debtors, bankruptcy can provide a clean financial slate. Upon declaring bankruptcy, a person who meets certain criteria can be relieved of debt as well as the threat of property loss, and can put an end to harassing phone calls from collectors. Chapter 7 and Chapter 13 bankruptcy are the two most frequently employed forms of bankruptcy. Chapter 7 calls for liquidation of the debtor's property to generate cash and pay off the debt. However, statues exempt many items of personal property from liquidation. In most cases the debtor does not have to give up any property. Chapter 13 bankruptcy usually allows full retention of property and enables the person to catch up on payments by creating a payment plan for the debt, allowing the debtor to repay the debt over a course of three to five years.
It is important to consult an experienced attorney like Paul Caston before making any decisions, in order to decide whether declaring bankruptcy is right decision. For more information on his Hattiesburg practice, visit www.paulcastonlaw.com.
Paul Caston, attorney in Hattiesburg, Mississippi, is a debt relief agency as defined by federal law. He helps people file for bankruptcy relief.