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Many people struggle with debts they cannot repay in a more timely manner. They can feel no matter how hard they try, they seem to fall further and further behind. Fortunately, bankruptcy protection provides a way out of debt, allowing people in unsustainable financial situations the opportunity for a second chance.

According to Arndt Buswell & Thorn S.C., a highly respected legal team serving western Wisconsin, the bankruptcy code provides several avenues out of debt, depending on the type of protection for which you file.

Chapter 7 Bankruptcy

A Chapter 7, also commonly referred to as a “liquidation,” provides a direct path out of debt by eliminating most of your unsecured debt, including credit cards balances, medical bills, and some lawsuit judgments. In return, the trustee of the court may seize some of your assets to pay back your creditors, but there are a variety of exemptions that may allow you to keep most of your property.

Chapter 13 Bankruptcy

Bankruptcy LawyerChapter 13 protection suspends all collection activity on secured debts, allowing you to catch up on missed payments through a court-managed repayment plan while discharging much of your unsecured debts. If your debt troubles are the result of a short-term financial disturbance, such as a job loss or hospital stay within your family, filing for Chapter 13 is an excellent way to get your finances back on track.

No matter which program you choose, all bankruptcy petitions invoke an automatic stay, putting an immediate stop to all collections efforts, from letters and phone calls to lawsuits and wage garnishments. There are financial guidelines to be followed to ascertain which filing you qualify for, so consult with an attorney to find out whether a Chapter 7 or Chapter 13 is right for you.

Arndt Buswell & Thorn S.C. has been serving clients throughout the area for a quarter century, providing a level of service that has made them a trusted part of the local community. Visit their website to learn more, or call (608) 269-1200 to speak to a representative at the Sparta location, or schedule a consultation with the Bangor, WI location by calling (608) 486-2324 today.

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