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Is Bankruptcy Right For You

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If you are struggling and overwhelmed with the amount of debt you owe, bankruptcy may be the right option for you. Bankruptcy is never an option that should be taken lightly, as it will have a negative and long-lasting effect on your credit. If you are unsure as to what the next step is to financial freedom, contact a bankruptcy attorney.
If you have too much debt, insufficient income and the lack of resources necessary to pay off the debt, bankruptcy may be right for you. There are other options which could be better for your situation. A bankruptcy will put a red flag on your credit report, and will stay on the credit report for seven to ten years. It will affect your financial future and prevent you from having good buying potential.
Nevertheless, there have been many successful people who have been through bankruptcy, and have been able to get back on their feet. The first thing to consider is whether you are eligible for Chapter 7 bankruptcy filing protection. This type of bankruptcy wipes your debt clean and you will not be liable to the creditors. However, it will damage your credit for some time. A Chapter 13 bankruptcy allows an individual to make arrangements with each creditor, and pay a certain amount of money that you can repay each month. Chapter 13 bankruptcy may allow you to retain some assets, such as a car or a home. Child support and student loans cannot be included in a bankruptcy.
Chapter 7, which is known as liquidation bankruptcy, is a good choice for those who have no real assets to protect. Under Chapter 7, people are only be required to liquidate assets that are not exempt by law, such as vehicles that are under $2,775. Items that are not exempt will be sold in order to pay off a portion of the debt, and the rest will be permanently discharged.

Chapter 13 is commonly referred to as a wage earner's plan. This allows you to pay off debt over 36-60 months, according to a court-approved repayment plan. This allows you to catch up on your mortgage, and does not require you to sell your home to pay your creditors. If housing foreclosure and overwhelming credit card debt is a daily stress, Chapter 13 could be your solution. This allows you to follow a repayment plan over 3-5 years all while letting you catch up on your mortgage and keep your home. You can stop the harassing phone calls and collection letters, while putting an end to the wage garnishments. This is a great option for people with a steady income that have fallen behind financially due to unforeseen circumstances and just need a chance to catch up.

If you have recently built up large debts as a result of a vacation, entertainment, or personal amusement, filing for bankruptcy is not for you. Most luxury expenses and debts accumulated before filing are not dis-chargeable if the creditor objects to them.

If you are currently ill and are foreseeing future medical expenses, bankruptcy should be delayed, any medical expenses incurred after filing will not be discharged.

An experienced attorney will assist you through the process of deciding whether or not bankruptcy is the right option for your. If it is, your attorney will make sure that you choose the right type of bankruptcy to file, and will walk you through the process in order to ensure that your rights and assets are protected.
Most bankruptcy lawyers provide free initial consultation, and it may be a good idea for you to meet with one to determine which course of action would be best for you.