If you find yourself in a tough financial spot where you cannot pay your bills and your creditors are tracking you down relentlessly, you need to make a change in your life. That change may be bankruptcy. Bankruptcy can help stop all the credit action and can actually put you back on track to good financial health.
#1 There are Two Types of Bankruptcy
First, it is important to understand that there are two types of bankruptcy that consumers use. With Chapter 7 bankruptcy, you are going in to get all of your debts forgiven so you can walk away without any debts. This is for individuals who really can't pay back all of the money that they owe. Chapter 13 bankruptcy is a little different. It is designed to restructure your debt so you can pay it off over a period of years. With Chapter 13 bankruptcy, some of your debt may be reduced as well. Either way, you are on a path to a financial future where you are not avoiding answering your phone out of fear of a debtor calling.
#2 Bankruptcy is for Serious Situations
Bankruptcy is for serious situations where your financial situation has drastically changed. For example, you got divorced and you can't handle your debt anymore. Or perhaps you lost your job and have already ran through your savings. Or maybe you have faced serious medical issues and are facing extremely high medical costs.
Bankruptcy is not just for when you are having trouble getting by--it is for when you have a financial change in circumstances that make you unable to handle your debt load as it currently stands.
#3 You Will Not Lose All of Your Assets
Finally, it is important to realize that you are not going to lose all of your assets by declaring bankruptcy. The courts do not want to leave you without a home, means of transportation, or retirement funds. They want you to settle your debt and still be able to live and get by.
You will get to keep your personal property, such as your clothing, furniture, and electronics. You may be asked to give up some larger assets, such as any investment properties you own or any additional vehicles you own. Some of your assets may be used to pay down your debtors, but you are not going to be stripped off all of your belongings.
It is also important to note that your retirement will be protected when you file for bankruptcy.
If you have a home, Chapter 13 bankruptcy can help you save your home from foreclosure. You will have to restructure your payment, but you may be able to save your home.
Bankruptcy is for when you find yourself, due to circumstances, in a situation where you can't handle all of your financial responsibilities. Depending on what situation you are in, you can file for Chapter 7 or Chapter 13 bankruptcy, and the court will work with you on a solution that will allow you to gain financial control of your life.
For more information, contact an attorney like James Alan Poe, P.A.Share