Should You File For Bankruptcy?
Living with a large amount of debt is overwhelming. You might use every paycheck to pay past-due bills, leaving you unable to pay off all your debts. You might notice your debt balances increasing each month instead of decreasing. In addition, you might dread each time you hear your phone ring. After all, it's likely creditors calling you for your payment. You're not the only one in this position, but you should consider doing something about it. Ignoring it will only make it worse, so you could consider bankruptcy.
What is bankruptcy?
Bankruptcy is a legal procedure people use when they need a way out of debt. Filing for bankruptcy provides relief from debt and many benefits, but it's not without consequence. Of course, there are different types of bankruptcy plans you can use. You'll need to meet with a bankruptcy lawyer to learn the types and choose the right one. You must qualify for the branch you use, and you must ensure that it provides the relief you need. The two primary types are Chapter 13 and Chapter 7.
Which branch would benefit you?
Using the right branch of bankruptcy is absolutely crucial. So the first thing you must do is find out which branch you qualify for at this time. You'll find that you might qualify for one or the other, but some people qualify for both. Regardless of which you qualify for, you must learn how the branch works and the benefits it provides before using it.
For example, Chapter 7 offers debt forgiveness, while Chapter 13 doesn't in most cases. However, Chapter 7 might require giving up things you own, while Chapter 13 lets you keep your things. Additionally, Chapter 13 requires a repayment plan that can last up to a few years. Chapter 7 is much faster, as it doesn't involve repaying debts.
What are the results and consequences of bankruptcy?
Finally, talk to a bankruptcy attorney to learn the results and consequences of bankruptcy. The results tell you what your finances will look like when you complete your bankruptcy case. The consequences reveal what you must give up to achieve those results. When you have this information, compare the results to the consequences. Are the results worth it? Your lawyer can help you answer this question.
Learn more about bankruptcy
After reading this, you might have more questions about bankruptcy. You can find the answers by meeting with a bankruptcy attorney of your choice.