Who Can You Turn To?
After a debilitating medical issue, a loss of employment, a foreclosure, or any other financial hardship, the threats of repossession—-and the incessant creditor harassment—-have you nearly pulling your hair out. You know that filing for bankruptcy might be the right option for you as you rebuild your finances and your life, but it’s a daunting proposition; the more you research the more you feel like you’re sailing down the proverbial financial creek without a paddle, and you’re scared that you might dash yourself against the rocks. How do you navigate this process without ending up in an even more difficult predicament than the one that had you considering bankruptcy in the first place? Read on to see if contacting a professional bankruptcy attorney to guide you through the process is the right option for you.
The First Steps of Your “Fresh Start”
There are namely two types of bankruptcies that an individual will consider filing in order to clear their debt and begin their next life chapter: Chapter 7, and Chapter 13.
- Chapter 7 bankruptcy involves a court-appointed trustee overseeing the liquidation of most of your assets apart from certain exemptions. This type of bankruptcy will remain on your credit report for ten years.
- Chapter 13 bankruptcy involves a court relegated monthly payment plan that allows you to continue to pay off your debt while retaining certain assets. This type of bankruptcy will remain on your credit report for ten years.
Clearly, a thorough understanding of your debt, your assets—-as well as which assets will qualify for an exemption from seizure—-is critical to determining the ultimate success of your bankruptcy, as you rise from hounded debtor to a credit-worthy individual in good standing. You’ll want to consult a bankruptcy attorney who’ll understand your unique situation, and who’ll advise you on which type of bankruptcy to file for—and indeed, whether or not bankruptcy at all is even the best option for you.
Going it Alone
If you choose to file for personal bankruptcy under either Chapter 7 or Chapter 13, remember that you’ll need to have a thorough knowledge of all the legalities involved: any mistakes you make during this difficult process will affect you in the long-run. Bankruptcy Forms are available to the public free of charge, so if you’re among the eight percent or so of litigants who move forward without an attorney, familiarize yourself with the US Bankruptcy Code, the Federal Rules of Bankruptcy, and your court’s local rules.
A Trusted Few
If this all seems daunting, then allow an attorney to help you with the following:
- Filing your bankruptcy petition.
- Explaining which chapters to file.
- Explaining which of your debts can be discharged.
- Clarifying your exemptions: ensuring that, if possible, you’ll keep your home, car, or other property after you file.
- Explaining the tax consequences of filing.
- Assisting you with most aspects of your bankruptcy case.
In the end, filing for bankruptcy is your new beginning: a good bankruptcy attorney, like those employed at Rulon T Burton and Associates, can guide you smoothly through the process and help you take your first steps.