Filing bankruptcy is a huge decision to make. The decision to file or not will have consequences. However, the consequences may not be what you think. As a bankruptcy attorney, the biggest mistake I see is NOT filing bankruptcy when you should.
So what is bankruptcy exactly? Firstly, when you file for bankruptcy, I will help you decide between Chapter 7 or Chapter 13 Bankruptcy. When you file for Chapter 7 Bankruptcy, you are declaring that you cannot afford to make payments because your income is too low, or you spend all of your income on necessities (housing, utilities, food, medical, etc). The trustee assigned to your case will liquidate any valuable assets you have (which most people do not have). This will get you a discharge of your debts without making payments. This is a true fresh-start bankruptcy.
In many cases, a Chapter 13 bankruptcy is the better option. In a Chapter 13 Case, you are proposing a repayment to some or all of your creditors. This plan can often be very affordable. You will probably not have to pay everyone back. This type of bankruptcy can help you repay tax debt, missed house payments, or protect assets. Some people choose a Chapter 13 even when they could do a Chapter 7.
Bankruptcy can help you enormously. Bankruptcy can help you get the debts under control. Whether we choose a fresh start under Chapter 7, or enter into a repayment plan under Chapter 13, you will be much better off than doing it on your own.
Don't disregard bankruptcy as a viable option. Bankruptcy does not have a stigma attached to it. Many people of different backgrounds file for bankruptcy relief. Call me today to discuss filing bankruptcy under Chapter 7 or Chapter 13.
I will help you figure out what is best for your situation.