Streamlining Your BankruptcyStreamlining Your Bankruptcy

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Streamlining Your Bankruptcy

I knew that I had hit rock bottom financially when I started making credit card payments with other credit cards. Before I knew it, collectors were contacting me almost hourly, and it started to get really frustrating. I knew that I had to turn things around, which is why I decided to meet with a bankruptcy attorney. My lawyer took the time to listen to my troubles and walk me through the bankruptcy process. He made everything seem much more manageable, which really helped me out. This blog is here to educate other people about how much the right bankruptcy lawyer can help.

How To Tell Chapter 13 Bankruptcy Is Right For You

When filing for bankruptcy, you'll have a few options for a method that will work best for you. Each method has their own advantages and disadvantages, which is why it helps to know the differences between them. Here are some reasons why you will want to pick Chapter 13 bankruptcy to deal with your debts.

You Have Joint Ownership of Property

One thing you'll want to consider is how your bankruptcy will affect other people. If you currently own property with another person, it's possible that your bankruptcy will affect them in the end if you pick the wrong form of bankruptcy. While Chapter 7 would allow creditors to go after the person that you co-owned the property with, Chapter 13 allows you to consolidate debts and repay them. If you are including the property in those debts, there is no reason to go after the other property owner if you keep making the required payments.

The automatic stay that is provided as part of Chapter 13 bankruptcy also gives you some time to figure out what will happen to the property. An automatic stay is essentially a period of time where creditors are not allowed to ask you for money related to your debts, which includes payments for the property.

You Have Debts That Can't Be Discharged

While you may think that bankruptcy is the answer to get rid of all your debts, that is not always the case. Some debts are not allowed to be discharged no matter what form of bankruptcy you use. If you currently owe child support, back taxes, or student loans, you'll find that Chapter 13 will work best for managing these debts.

Chapter 13 allows you to consolidate your debts into one single debt that you pay towards each month. The amount that you pay gets split between your creditors equally until the debts are paid off.

You Drive A Car That Isn't Paid Off

If your car is essential in your life, but the car isn't paid off yet, you may want to use Chapter 13 to hold onto the car. This is the only form of bankruptcy that will let you hold onto the car and work towards paying it off.

When you're not sure about the form of bankruptcy that will work best for you, visit the website of a local bankruptcy lawyer like They will often have general information and contact information to help you make an informed decision.