All over the country and right here in Memphis, people struggling with debt continue to file for personal bankruptcy. While filing for Chapter 13 bankruptcy can be a difficult and personal process for people, it can also provide a much-needed way out from overwhelming debt.
While many people view bankruptcy as something that only effects people in the direst of financial situations, the truth is that many different types of people file for bankruptcy. Bankruptcy is not reserved only for those who are unemployed. Bankruptcy is typically used by people who have jobs as a way to work together with their creditors to come up with a debt repayment plan. It can help debtors to find a way to get out from under debts that have become unmanageable.
As an example, a judge in Texas recently filed for bankruptcy, citing debts owed to various creditors, including former attorneys. This is the second time this particular judge has gone through bankruptcy proceedings. The judge's debts were discharged in the prior bankruptcy.
Filing for Chapter 13 bankruptcy allows individuals to discharge qualified debts and to renegotiate payment plans with their creditors. When people get in over their heads in debt, bankruptcy provides a way out. An attorney experienced in bankruptcy law can assist a consumer by assessing all their options before filing for bankruptcy. If a client decides bankruptcy is the best course of action the right lawyer will help to guide the debtor through the process.
Source: The Daily News, "Dupuy seeks to have bankruptcy case dismissed," Chris Paschenko, Dec. 7, 2012