Are you unable to repay your loans, credit card debt, or mortgage installments on time? Are you avoiding phone calls from debt collectors because of the stress they are putting you through? If so, it is time that you consider bankruptcy as an option.
Bankruptcy helps people who can no longer afford to pay their debts get a fresh start. It offers individuals a way to deal with unmanageable debt and begin rebuilding their financial future. A knowledgeable bankruptcy attorney can help you understand your options when it comes to filing for Chapter 7 or Chapter 13 bankruptcy, discuss whether your case qualifies for either type of bankruptcy and advise you on what’s best in your situation.
A bankruptcy petition initiates a process through which you can get rid of all or some of your debts. Depending on the type of bankruptcy you file (see below), you’ll either have to repay some or all of your debts or have them written off. Typically, you’ll file for bankruptcy under one of two chapters. Chapter 7 is often referred to as straight bankruptcy. It’s the most common form of insolvency in the U.S. Chapter 13 is a form of individualized bankruptcy. It’s typically used by people who aren’t eligible for Chapter 7 but have significant debt. The goal of bankruptcy is to give people a fresh start. That includes wiping out some or all of their debt, getting back on their feet financially and regaining control of their lives.
Chapter 7 Bankruptcy: This is a common type of bankruptcy used to liquidate assets, pay off debts, and discharge (or wipe out) certain types of debt. This form of bankruptcy requires the filing of a petition which is usually approved by a court-appointed trustee. Chapter 7 bankruptcy is the most common type of personal bankruptcy and often goes by the name “straight” bankruptcy.
Chapter 13 Bankruptcy: This is a type of repayment plan bankruptcy in which the debtor must submit a court-approved plan to repay creditors over a period of three to five years. Typically, individuals with a steady income, and a sizable amount of debt, but who don’t qualify for Chapter 7 bankruptcy should file for Chapter 13.
Before you file for bankruptcy, it is crucial that you understand exactly what the process entails. Bankruptcy filing is a complex process that involves the submission of detailed documentation, along with an attorney’s fee. The court filing process can take anywhere from three to five months, during which time you and your family will have to live with the added stress and anxiety that comes along with having to deal with creditors. Before filing for bankruptcy, you will have to make a list of all your debts, including those that are in collections.
Once you file for bankruptcy, you cannot change your mind and decide to repay the debts instead. Once you file for Chapter 7 bankruptcy, it is permanent and cannot be reversed. You will have to pay a fee along with the costs of having your case heard in court. You will also have to fill out a lengthy questionnaire where you will have to list all your assets, debts, and income.
If you have a complicated case, you absolutely need a bankruptcy attorney. Filing chapter 7 bankruptcy may seem pretty straightforward; however, there are a few factors that make things difficult:
If you are struggling with any of these issues, you need to hire a bankruptcy attorney. A bankruptcy attorney has the knowledge and experience to help you navigate these issues. We also recommend always hiring a bankruptcy attorney if you plan to file for Chapter 13 bankruptcy. A bankruptcy attorney will also help you keep as much property as possible after filing.
Bankruptcy is an extremely serious decision that can have a significant impact on your financial future. Before you file for bankruptcy, make sure to explore all of your options and consult with a knowledgeable bankruptcy attorney. It is important to understand exactly what the process of filing for bankruptcy entails and what you can expect once you file. If you believe bankruptcy is the only way out of a difficult financial situation, contact our team of dedicated attorneys today for a consultation.