Drowning In Debt? Why Bankruptcy May Be A Fresh Start
Saturday, May 20, 2017, 6:00 AM | Leave Comment
If you are having trouble paying your bills, it may be a good idea to look into filing for bankruptcy.
When you file, a judge will put an end to collection calls and letters that creditors may send by the dozens each day.
Furthermore, it may be possible to have debts discharged within weeks or months.
How else may bankruptcy provide a fresh financial start?
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You May Keep Personal Property
Depending on the bankruptcy laws in your state, your financial status and the type of property that you own, you may lose nothing in a bankruptcy case.
If you file for Chapter 13, you generally get to keep your house or car assuming that you make plan payments as agreed.
Retirement accounts and necessary items such as a car to get to work with may also be exempt from liquidation in Chapter 7 cases.
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Pay Creditors Nothing When Debt Is Discharged
If your debt is discharged in a Chapter 7 case, you may have your debts wiped away while paying nothing.
This is generally true if you don’t have any assets of value to liquidate such as a house, car or jewelry.
Those who have nothing but retirement assets or other investments may be allowed to keep them by bankruptcy trustees.
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Talk To A Bankruptcy Attorney
It may be in your best interest to talk with a bankruptcy attorney, like those at Lazaro Carvajal, who can tell you more about the process of filing.
He or she may be able to say more about whether you qualify for Chapter 7 or if you have to settle for a reorganization bankruptcy.
Legal counsel may also be able to help protect your rights in the event that you are given a stay of creditor collection efforts when you file.
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Bankruptcy Isn’t The End Of Your Financial Life
In most cases, you can rebuild your credit score in 12-24 months after the case is resolved.
As long as you make plan or other remaining payments on time, your score will reflect the fact that you have learned from your mistakes and are a good risk to repay new debts.
If you are struggling to repay your debts, it is important that you explore all of your options. Instead of having items repossessed or living in fear of collection calls, it may be best to talk to an attorney about filing for bankruptcy as a way out from your mountain of balances owed.
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