About four years ago, I could tell that things were turning south with my business. Cash flow was tight, and customers simply weren't coming back to shop some more. I realized that if I was going to keep my house, I would need to do something to resolve my finances. Although it was scary, I decided to meet with a bankruptcy attorney. After I explained my situation, he helped me to understand the process and how to tell if it was a good idea or not. When I decided to do it, things started changing for me right away. This blog breaks down bankruptcy in layman's terms, so that you can decide whether or not it is right for you.
Getting into financial trouble is not hard to do but getting out of it can be. If you no longer can manage to pay your bills and have creditors calling you nonstop, you should look into your options. One of the options you have is bankruptcy, and here are three things you should know about this before you decide to file.
What Bankruptcy Helps With
While there are two main branches of bankruptcy you can use, both offer debt relief in certain ways. Chapter 7 is the branch that does not require repayment of debt, and this branch can help you if you owe money on medical bills, unsecured loans, and credit cards. Chapter 13, on the other hand, is the branch that will require repaying your debts, and this branch can help you if you are behind on your mortgage payments or car payments. It can also help you if you owe money on back taxes, back child support, or other types of debts.
What Bankruptcy Cannot Do
Along with offering relief, bankruptcy has limits, too. When it comes to Chapter 7, for example, you will not be able to save your house or car if you are behind on the payments. With Chapter 13, there are limits too. For example, if you owe a lot of money on credit cards, you will most likely have to repay some of the money you owe on these debts. Neither branch of bankruptcy can eliminate certain types of debts you owe, including alimony or child support.
How You Can Find Out If Bankruptcy Is Right for You
Now that you know that bankruptcy can help with certain things and not help with other things, you will need to meet with a bankruptcy lawyer to find out if you should file for bankruptcy. When you have this meeting, the lawyer will do the following things to help you make a good decision about this:
These are the main things a lawyer will do at an initial consultation appointment. If you are trapped in debt and do not know how to get out of it, contact a bankruptcy law firm to schedule a free consultation visit with a lawyer today. You can also check out a website like http://www.haven-law.com/ for more information.
Share29 August 2018
