Attorneys Help You Say Goodbye to Debt

Posted on: 7 November 2022

Bankruptcy is a legal process where a person or business seeks relief from some or all of their outstanding debts. It can be done through the creation of a repayment plan, the liquidation of assets, or a combination of both. It usually comes as a last resort for individuals who cannot repay their debts and want to protect themselves from creditors. Knowing the basics of bankruptcy law before filing for it will enable you to make the best decision. During this process, you should also work with a bankruptcy attorney. They'll provide you with solutions that fit your unique circumstances. Here are three bankruptcy law aspects you need an attorney to help you handle.

Determining Which Type of Bankruptcy Is Right for You

There are two main types of bankruptcies: Chapter 7 and Chapter 13. The former is known as liquidation because it involves the sale of assets to repay debts. It's best for those who have very little money or property. The latter, on the other hand, involves reorganization and creating a repayment plan to pay back debts over time. This option is ideal for people who have a regular income and want to keep their property. A bankruptcy attorney can help you determine the right option based on your financial situation, debts, assets, and income.

Explaining What Happens to Your Property After Filing an Application

You may keep a large portion of your property if a sale cannot raise enough money to repay a significant portion of your debt. However, if you have a lot of equity in your home, you may be required to sell it to repay some of your debt. The same may apply to valuables, such as boats or RVs. If you own a car, you may be able to keep it if you continue making the payments. But if you're behind, the lender may require you to reaffirm the loan. A bankruptcy attorney will evaluate your options and tell you what's best for your situation. 

Explaining What Happens Before the Filing Process

You need to do several things before filing for bankruptcy. These include getting credit counseling, taking a means test, and filling out the required paperwork. A bankruptcy attorney can walk you through them and ensure you do everything correctly. This will ensure everything goes on smoothly. 

Filing for bankruptcy is a big decision that you shouldn't take lightly. If you're considering this option, contact a bankruptcy attorney. They'll help you to understand the law and take the best steps for your financial future. Schedule an appointment with these professionals today to get started.