If you feel like you are at the end of your rope financially and there is no way out, you may be considering bankruptcy. If that sounds like you, there may be a lot of questions on your mind. You may wonder which type of bankruptcy is best for you. The best way to have those questions answered is to schedule a consultation with an experienced bankruptcy attorney. If you are not quire ready to do that, check out the questions below and then consider making a phone call to get your finances back on track.
What is Bankruptcy?
Bankruptcy occurs when you are unable to satisfy your financial obligations and exercise your right to have some or all of your debts erased or restructured to enable you to pay off the debts while easing the financial stress. It is a completely legal process that thousands of people use each year to manage their debt. Bankruptcy happens in the Federal court system and is best handled by a bankruptcy attorney.
What Type of Bankruptcy Should I Consider?
In a chapter 7 bankruptcy, the debtors claim that they are financially destitute. They do not have employment that allows them to earn money to pay down their financial obligations. In these cases, the debtor has too little income to cover the amount of debt owed. Chapter 7 bankruptcy allows the debtor to eliminate the debt and have a chance to start over. Therefore, this type of bankruptcy is best for people who primarily need to clear their debt.
A chapter 13 bankruptcy mean that you have income to pay your debts, just not as the creditors require. This type of bankruptcy is often helpful for people who are behind on their automobile or mortgage payments. Chapter 13 bankruptcy will allow the debtors to formulate a plan with the creditors to bring the debts current. Therefore, this type of bankruptcy is best for people who want to retain property or who cannot file chapter 7.
What if I Cannot Afford an Attorney?
The truth is, you cannot afford to not hire a bankruptcy attorney if you are struggling enough to consider bankruptcy. Affording a bankruptcy attorney might be easier than you think. Once you file a bankruptcy claim, bill collectors will stop, and you can stop making payments to them. This will free up money that you can use to pay for legal fees. Because bankruptcy takes place in federal court, it is not advisable to attempt to file bankruptcy by yourself. The courts are not under any obligation to help you, so making a mistake could be devastating. The court even could reject your case and possibly block you from refiling.
What Property Will I Be Able to Keep?
In a chapter 7 bankruptcy you will be able to keep all property that is exempt from creditor claims. In a chapter 13 bankruptcy you can keep all of your property if the plan meets all requirements of the bankruptcy law. Therefore, most people filing bankruptcy are able to keep all of their property.
Are You Ready to Consult with an Attorney?
If you still have questions about whether a bankruptcy is right for you, or if you are ready to file for bankruptcy, contact the attorneys at Lankford & Moore Law and schedule a consultation. They have years of experience helping their clients escape financial frustration. Contact them today to schedule a consultation and begin the process of getting your finances back on track.
