The truth about filing bankruptcy is that it can feel daunting, and there’s often a stigma attached to it, leaving many feeling embarrassed. However, the real challenge comes from trying to go through the process without legal help, as it can be complicated. Missing deadlines, mishandling paperwork, and not understanding specific rules or terms can cause big problems. Another issue is not really knowing what bankruptcy means and what it involves.
Terms and Facts About Filing Bankruptcy
The purpose of filing for bankruptcy is to protect a person from creditors and allow for their assets to be shielded from future claims. Here are some terms to help you understand the basics of filing:
- Exempt: if you are the debtor and are filing for bankruptcy, you’ll need to list all of your property that is exempt (aka those items you are able to keep). These are items that are necessary for your everyday living.
- Non-exempt: items listed that may be taken and liquidated by creditors. You need to be as honest as possible as there can be repercussions for fraudulent actions or concealing information. Your attorney will explain how this works.
- Court Involvement: a court must decide whether or not you qualify to declare bankruptcy.
- Chapter 7: this type of bankruptcy is most often used to discharge unsecured debts. You must be current on your mortgage and car payment when you file if you want to keep those items.
- Chapter 13: this is a repayment form bankruptcy; a debtor is given additional time to repay past-due secured payments.
- Chapter 11: corporations and businesses typically file fort this type of bankruptcy.
These are just a few helpful terms, but there are many more facts about filing bankruptcy for you to explore. We can help guide you through this hard time with our experienced bankruptcy attorneys.
How Burrow & Associates, LLC Can Help
Burrow & Associates, LLC stands as a comprehensive bankruptcy law firm dedicated to the Atlanta, Georgia, metropolitan region. We place great importance on every client, aiming to guide them through the process of filing for bankruptcy while protecting their assets. For further insights into Burrow & Associates, LLC, including the variety of cases we manage as a personal injury law firm in both the Atlanta area and Athens, and for more facts about filing bankruptcy, please contact one of our local offices today.