Most people hope they never have to experience filing for bankruptcy. In the past, there was a stigma associated with filing for bankruptcy protection. Now that the stigma is largely gone, many people don’t dread it quite as much.
Consumers generally file either Chapter 7 or Chapter 13. One is not better than the other. Everyone’s circumstances are different. That is why it is important to schedule a free, initial consultation so we can get your complete financial background and determine which type of bankruptcy is best for you.
Chapter 7 is the more common bankruptcy and is quicker. However, if your income is too high or if you have assets that you might lose in a Chapter 7, then Chapter 13 is a good alternative. Chapter 13 involves a payment plan, but that doesn’t mean you are going to pay your creditors in full. As soon as you file either bankruptcy the creditors must cease all lawsuits, calls and collection efforts. Chapter 13 is also great for stopping foreclosures and repossessions.
Because people fear losing valuable assets, it’s vital to determine which are exempt and nonexempt. Learning how the law applies to your circumstances allows you to decide which option is best for you.
One thing to remember when you file for bankruptcy is that the process won’t be painless, but it often relieves a great deal of stress.
Bankruptcy is quite complex, and it is advisable to seek legal guidance prior to filing your petition.