If you are not able to pay your bills, meet your financial obligations, or service your debt, you may be considering filing for bankruptcy. The decision to file for bankruptcy can be a complicated one and it is important that you do not rush into this decision.
It is important to note that filing for bankruptcy does not erase debts completely; instead it restructures them with the intention of making payments more manageable over time.
In order to make the best decision possible, it is important that you have all of the information available. This article will provide some basic information about bankruptcy and what it means in terms of your finances. You’ll also learn about the situations in which someone might need the help of a bankruptcy attorney.
First, What Are the Types of Bankruptcy?
The first thing to understand about filing for bankruptcy is that there are two types: Chapter 7 and Chapter 13.
A Chapter 7 bankruptcy requires liquidation of assets which can range from a car to furniture or other items of value in order to repay creditors what they are owed.
A Chapter 13 bankruptcy requires repayment plans which typically last three-five years.
What Do Bankruptcy Attorneys Do?
A bankruptcy attorney is a lawyer that specializes in bankruptcy law. They can help you with all aspects of filing for bankruptcy and will be able to answer any questions that you might have about the process.
The first thing to do if you are considering filing for bankruptcy is to look into whether or not it is the right decision for your situation. If it is, then you will need to find a good bankruptcy attorney who can guide you through the process and help you complete all the required paperwork.
When Would I Need a Bankruptcy Attorney?
The basic answer to this question is, anytime you’re struggling financially and can’t seem to get out of it.
The purpose of bankruptcy is to allow a debtor to discharge his or her debts.
Bankruptcy is a legal procedure that can be used by individuals, corporations, partnerships, and trusts. It allows a person or business that can no longer afford to pay their debts to obtain relief from creditors and have the opportunity to get back on track with their finances.
A bankruptcy proceeding will usually last for about three months and during this time the debtor will not be able to borrow money from any source, including credit cards. He or she will also not be able to sell property except in cases where it is necessary for the support of his or her dependents.
Whether you have massive credit card debt or can’t meet your obligations as a business, bankruptcy could be the way out for you. An attorney can help you navigate, so be sure to call a good one. They will save you a ton of time on paperwork, stress, and getting through the complicated process.