Bankruptcy Attorney
Filing for bankruptcy is a decision that must be carefully considered before moving forward. While filing for bankruptcy can allow debtors much-needed relief, it still comes with consequences that impact a person’s ability to access credit after bankruptcy is resolved and debts have been discharged. While it can be challenging to take this next step, bankruptcy is the best option to experience relief and start afresh for many. There are several indicators debtors should pay attention to when they believe they could be in over their heads, making bankruptcy the best available option. When moving forward, working with professionals like The Law Offices of Neil Crane can play an essential role in providing debtors with their filing options. While there are several available options, a lawyer will be able to listen to their client’s needs and ensure that they recommend a chapter filing that keeps their interests at the forefront. Filing for bankruptcy can result in feelings of shame and defeat. Despite this, know that starting with a clean slate and rebuilding your credit after bankruptcy is possible.
When to Consider Bankruptcy
When people struggle financially, many believe they will be able to find a way out without the need for measures as significant as filing for bankruptcy. It is possible to resolve debts without filing for bankruptcy, so debtors must engage in credit counseling before filing for bankruptcy. However, if you are experiencing any of the following, it’s time to act by weighing the possible options that may be available:
- You are unable to make minimum payments
- You skip monthly bills to pay others
- You are using a credit card to pay for regular expenses
- You are at risk of losing your home
- You are receiving calls from creditors
- You are unable to get approved for debt consolidation
- Debt collectors have garnished your wages
When experiencing such hardships, it can be easy to try and avoid the issue. However, it’s crucial to take action so that you can start moving forward with a fresh slate. By doing so, debtors can finally experience relief from constant calls from creditors and debts that are all-consuming.
Bankruptcy Filing Options
There are several bankruptcy chapters that debtors have available to them. However, it’s essential to be aware that the type of filing will depend upon the specifics of your situation. As a bankruptcy Attorney, will share, for those who earn a consistent income or are looking to prevent their home from going into foreclosure, Chapter 11 may be a better option than a total liquidation. The most common types of chapter filings for personal bankruptcy are:
Chapter 7: Full liquidation, debtors, must qualify by attending credit counseling, earning an income below the state’s median, and passing the means test. Debtors can retain some exempt property, and many of their debts are forgiven, allowing them to start fresh.
Chapter 13: Known as the wage earner’s plan, Chapter 13 is appropriate for debtors who do not qualify for Chapter 7 and can pay their debts back. Through this process, debtors can restructure their debts and develop a repayment plan where debts are paid back over 3-5 years. This is advantageous for people looking to keep their personal property, such as their home.
While taking steps toward filing for bankruptcy isn’t an easy decision, debtors often experience significant relief. If you are struggling to pay your debts and are unsure how to move forward, bankruptcy may be the most viable option.
