Bankruptcy Is a Legal Declaration That An Individual Is Unable to Pay Their Debts

Written by Adam Peck Category: Nursing Homes January 23rd, 2013 2 min read

Debt is one of the most dreaded and troublesome aspects of a person’s finances. When people are in debt they need to pay back money that they once borrowed and this can be tough for many people. In this situation a person might have used debt to leverage their needs but unfortunately they had an unexpected setback financially. This could be job loss or loss of income, medical problems, or they eventually find out that their monthly debt payments are too much to cover at the present time. As a result people are in over their heads and are in desperate need of help in order to make their debts payments more affordable.

There are quite a few options for someone who is in debt. They can get credit counseling in order to find a good payment plan for them. These people can also go into a debt consolidation program or a debt settlement program. Negotiating with creditors directly can also be an option for people who are having difficulty paying their debts.

However when it comes to debt settlement there is a last resort which is bankruptcy. Bankruptcy is a legal declaration that an individual cannot pay back their debts. During bankruptcy there are usually two common arrangements that can be made during this process. The first option is Chapter 7 which is declaring insolvency and in most cases all the person’s debts are excused and they are no longer liable for the debts. The second option is known as Chapter 13 which is a type of bankruptcy where a person in debt agrees to make a payment plan with their creditors. Chapter 13 and Chapter 7 bankruptcy are among the best bankruptcy plans for debt settlement.

Share it

Questions? Check with Peck Today

Blog Lead Form

Elder Abuse and Neglect in Assisted Living Facilities

Elopement in Nursing Homes

Assisted Living Abuse

Settlement Reached in Assisted Living Facility Death

Assisted Living Abuse and Neglect Attorneys

Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.