If you recently lost your job or got laid off, you are probably dealing with the sting of not being able to pay your bills. The overdue and late notices are piling up, the creditors keep calling and wanting money and you have no way to pay them. If this sounds like you, there is a solution to help get your life back on track and regain control. You can put an end to the harassing phone calls, nasty letters and the fear of losing your home all by filing for bankruptcy.
When you have a lot of debt and you need a way to stabilize your finances, filing for bankruptcy is a reliable solution. However, before you do so, it is best to know which type of bankruptcy is best for your personal situation.
Your first option is to file for Chapter 7 bankruptcy, which allows you to discharge or get rid of your debt, so you can start over financially.
If you are having financial struggles and unable to pay back your debt, the thought of filing for bankruptcy might have crossed your mind. There is a lot more to bankruptcy than you probably imagine, so it helps to learn everything there is to know first. Here are some important things to understand about filing for bankruptcy.
It is not a fast process
The first thing you should know about filing for bankruptcy is that is not a fast process and will not be done overnight.
A bankruptcy attorney is going to be one of the best resources at your disposal when you are filing a bankruptcy case, mostly because of the many ways in which he or she can assist you. An attorney can help you pick the right type of bankruptcy for you, deal with your creditors, and offer flexible payment terms.
Pick The Right Type Of Bankruptcy
A bankruptcy attorney can help you pick the right type of bankruptcy for your particular situation.
Chapter 13 bankruptcy is designed to prevent the end of a small company that is listed as a proprietorship. Its effectiveness is highest when the company is dealing with a large proportion of non-guaranteed debt, and a small proportion of guaranteed debt. The latter must be reimbursed in no more than 5 years. Before filing for chapter 13 bankruptcy, consider the information below—you might find that this bankruptcy option isn't optimal for your small business.