Estate Planning Lawyer
When you are in debt, you may wonder if filing for bankruptcy is the right choice for your situation. While you don’t have to file for bankruptcy simply because you are in debt, you might feel desperate to have those debts paid, but with no way to pay them. In such a case, bankruptcy might be the only solution, but how do you know for sure? Speaking with a bankruptcy attorney can help you determine what to do when you are faced with serious debt.
Is Bankruptcy Required?
If you have the means to pay off your debts, bankruptcy is not required. You may be able to come up with a budget on your own so you don’t get sent to collections. If this is something you feel equipped to do, even if it requires the assistance of friends or family, then it may be your best option. Chapter 7 bankruptcy stays on your credit report for up to ten years and chapter 13 bankruptcy is on your report for up to seven years. If you can avoid this, you should.
What If There Is No Other Option?
If there is no other option but to file bankruptcy, it’s going to be ok. Bankruptcy is a great option for those who don’t have the means to figure out their debt on their own. According to the law, there is no minimum requirement on the amount of debt one must have to file for bankruptcy. If you are unable to pay your debts on your own, creditors are unable to work with you, creditors are trying to sue you or garnish your wages, or you are dealing with other similar issues, bankruptcy could be your only option.
Do I File Chapter 7 or Chapter 13?
There are two types of bankruptcy a person will typically file. Chapter 7 bankruptcy is for those who don’t have a disposable income. The individual’s property will be sold to pay off as much of the debts as possible. Chapter 13 bankruptcy is for those who do have a secure income. Instead of selling property, the court will outline a course of action to pay back all or a portion of the debts. Once the individual has completed his or her part of the agreement, the remaining debts are often forgiven.
You may still be wondering whether filing for bankruptcy is the right choice for you, and that’s understandable. To learn more, contact a bankruptcy lawyer, like a bankruptcy lawyer, today and discuss your case.