Debt often sneaks up on individuals, making it difficult to know the best way to proceed. In some instances, the best option is to petition the court for debt elimination or reorganization of debt. Many people are surprised to learn a Fort Collins Bankruptcy lawyer does not always advise clients proceed with the case. A petition offers both positive and negative effects on the individual and his or her family.
Sometimes clients have little other choice. They may have attempted to develop payment plans with creditors who refuse to budge. They are insisting on full payment, which the individual does not have. Their next step is to file for a judgment and begin garnishing wages, making the situation even worse.
It also makes sense to file the petition if debts exceed assets. If income cannot meet the obligations and the money owed is greater than the worth of one's assets, there may be few options. Filing the case can provide the needed relief from such overwhelming debt.
The action does offer protection for an individual's IRA, according to the Supreme Court. This asset is considered exempt from seizure during liquidation of assets. Thus, individuals who have saved to build a retirement can protect these savings.
While many people fear filing the petition could cause them to lose their retirement savings, such accounts are protected, according to the US Supreme Court. The courts may not empty these accounts during liquidation. Thus the relief can help those who fear losing the retirement to debtors.
Before deciding to file, visit with a Fort Collins bankruptcy lawyer. He can provide both advantages and disadvantages of filing. If the petition is the best option for the individual, the attorney can complete any paperwork needed.
Sometimes clients have little other choice. They may have attempted to develop payment plans with creditors who refuse to budge. They are insisting on full payment, which the individual does not have. Their next step is to file for a judgment and begin garnishing wages, making the situation even worse.
It also makes sense to file the petition if debts exceed assets. If income cannot meet the obligations and the money owed is greater than the worth of one's assets, there may be few options. Filing the case can provide the needed relief from such overwhelming debt.
The action does offer protection for an individual's IRA, according to the Supreme Court. This asset is considered exempt from seizure during liquidation of assets. Thus, individuals who have saved to build a retirement can protect these savings.
While many people fear filing the petition could cause them to lose their retirement savings, such accounts are protected, according to the US Supreme Court. The courts may not empty these accounts during liquidation. Thus the relief can help those who fear losing the retirement to debtors.
Before deciding to file, visit with a Fort Collins bankruptcy lawyer. He can provide both advantages and disadvantages of filing. If the petition is the best option for the individual, the attorney can complete any paperwork needed.
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