Drowning in Debt? A Bankruptcy Might Be Your Answer
When you’re in debt, it can be hard to get out on your own. Each day you worry if your home is going to be foreclosed on or your car is going to be repossessed. You avoid answering the phone so you don’t have to talk to bill collectors. When the debt is overtaking your day to day life like this, something needs to change before it gets even worse. One thing you can do is speak with an attorney about filing for bankruptcy.
Bankruptcy isn’t for everyone, but if you’re worried about a foreclosure or repossession, it may be something you want to look into. A lawyer will be able to help you decide if you want to file for Chapter 7, Chapter 13, or if a different chapter would be applicable for you. Each one has different qualifications, so it’s a good idea to have a lawyer help you decide which one to file for.
By filing for the wrong one, your entire case could be dismissed. Qualifications for each chapter generally depend on your level of income, the amount and types of debts you have, and whether or not you own a business.
Once your lawyer has helped you figure out which chapter you qualify for, the will begin the paperwork with you. This means going through your financial statements and figuring out a plan of action. For example, with Chapter 7 you would gather all of your assets together, with the exception of essential assets like your home, and prepare them to be sold.
If approved by a judge, your assets will go to a trustee who will sell all of them. The trustee will use the money gained from the sales to repay your debts. In Chapter 13, your debts are instead reorganized into one lump sum, and you will make payments towards that amount each month for a period of three to five years.
If you’re being bombarded by debt collector calls and worrying about losing your home or car, speak with a lawyer today. They can help you figure out if this is the right option for you. If so, they can help you decide what chapter to file under and then continue helping you through the entire process.