No one wants to file for bankruptcy, yet it can actually be a positive, beneficial step for many individuals facing insurmountable debt. Bankruptcy is largely misunderstood, and there is a negative stigma associated with walking through this potentially necessary process. From the thought of losing your property to getting rid of debt, you may have many questions and concerns about how it works.
You always have the right to know your legal options and understand the choices available to you, even if you are unsure if bankruptcy is the right choice for your situation. By reaching out to an experienced bankruptcy attorney, you can get the information you need to make a decision and seek a stronger, more stable financial future.
Common questions about bankruptcy
It is normal to have questions about bankruptcy. Most people do not know how the process actually works, but you would be wise not to allow misconceptions to keep you from pursuing freedom from your debt. Individuals curious about bankruptcy often have questions similar to the following:
- Will bankruptcy actually get rid of my debt? What happens to your debt largely depends on the type of debt you have and the chapter of bankruptcy. For example, Chapter 7 bankruptcy allows for the discharge of eligible unsecured debt. Chapter 13 bankruptcy reorganizes debt, which the applicant pays off over time.
- Should I file for Chapter 7 or Chapter 13 bankruptcy? The chapter of bankruptcy right for you will depend on the factors of your unique situation. Chapter 7 is often an option for individuals with a significant amount of debt or those who have no hope of paying off the debt on their own in the future. Chapter 13 may be right if you are about to lose your home and have the ability to pay according to a bankruptcy plan.
- Will I lose my property? Bankruptcy law allows individuals to keep a certain amount of their personal property. You may be able to keep your vehicle, things necessary for work and other important items.
Having the right information about bankruptcy is the first step in dismantling the negative stigma about this process. While many people think that it is shameful or embarrassing, bankruptcy could be a choice that allows you to get rid of debt and to move forward free from harassment from creditors.
One of the most practical ways for you to learn about the potential benefits of bankruptcy is to seek a complete case evaluation with a knowledgeable attorney. This will allow you to get the information you need and determine if seeking bankruptcy protection is practical for you.