While the concept of bankruptcy usually comes with certain stigmas, it can actually be a great way for people to start fresh and get out of a great deal of their debt. When they do this, they can begin rebuilding and moving on with their lives. That said, how do you know if it is best to file for bankruptcy? You should not file for bankruptcy on a whim or if you simply do not feel like paying back your debts. Bankruptcy is a very serious situation and you want to ensure you have all of the facts before moving forward. If you are seeking out more information on filing for bankruptcy and would like to speak with an attorney more in-depth on the subject, please reach out to a law firm now so that they can help you get started on a better path.
How do I know if bankruptcy is the best option for me?
This is a good question, and it is one that our lawyers can sit down and discuss with you in-depth. It is imperative that you know once you file for bankruptcy, it will absolutely help you with your debt, however, it will impact your credit score in a huge way and will do so for many years. Thus, when you work with us, we can help you carefully weigh your options to see if this is the best move.
Are there different types of bankruptcy?
Yes, there are a few types of bankruptcy, and the two most popular are Chapter 7 and Chapter 13.
- Chapter 7. If you can protect your property with exemptions and meet the low monthly income requirements, you may be eligible to file for Chapter 7 bankruptcy.
- Chapter 13. On the other hand, if your monthly income is higher than that needed for Chapter 7, you would like to save certain assets (like your house or your car), and you can pay back certain debt on a specified repayment plan, you may be best suited for Chapter 13 bankruptcy.
Does bankruptcy just wipe out my debt?
When considering bankruptcy, you should not think of it as the one option that can simply wipe out all of your debt and leave you free of responsibilities. It is important that you sit down with one of our attorneys to discuss what your goals are in filing for bankruptcy. Which debts do you want to eliminate? What kind of repayment plans are possible for you in the next 3 to 5 years? What kind of domestic support obligations do you have (alimony/child support)? These are all important topics to discuss with your attorney.
Is it possible to keep your property?
While many people would like to keep all of their property when they file for bankruptcy, it is important to discuss different bankruptcy exemptions so you can understand which assets are protected. This is also dependent on whether you file for Chapter 7 or Chapter 13.
For more information on bankruptcy, do not hesitate to contact an attorney. They would like to help you get back on track for a better life.