Declaring bankruptcy may seem like an overwhelming process, so it’s important to first understand exactly what bankruptcy means. Simply put, bankruptcy is the legal process to relieve individuals and businesses of some or all of their debt. There are different types of bankruptcy, and your financial situation and assets will help determine your options to discharge all of your debt or establish repayment plans with some of your creditors. Ultimately, declaring bankruptcy is a way for you to get a fresh start, free of debt. Knowing the answer to “what is bankruptcy?” and related questions can help you make an informed decision to file.
What is bankruptcy – How can it help in the short term?
When you declare bankruptcy, you are granted an automatic stay on your debt. This stay blocks creditors from attempting to collect debt through wage garnishment, repossession, or deducting money from your bank account. It also gives you time to work with your creditors in court to figure out a timeline for your next steps.
What is bankruptcy – What are my options?
Typically, individuals file for either Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 bankruptcy, often considered a total bankruptcy, is best suited for those with lower incomes/minimal assets. It eliminates all of your outstanding unsecured debt, such as credit cards, medical bills, unpaid car payments or rent, and other unsecured loans. A Chapter 13 bankruptcy is best suited for individuals with substantial income and who want to protect their assets. Chapter 13 bankruptcy is an agreed-upon repayment plan to satisfy creditors over a 3-5 year period. Good legal advice can help you navigate your individual needs and financial situation to determine the best option for you.
What is bankruptcy – What does filing for bankruptcy entail?
Once you have decided on your best option, the next step is to file. Filing for bankruptcy is a painstaking process that requires a great deal of paperwork. You will need to file and submit all relevant forms, collect and analyze all of your financial records, attend court hearings, and meet all court and paperwork deadlines. Our attorneys and staff will walk you through this complicated and often overwhelming process. You can rest assured that we have worked through almost any issue you can imagine over the last 26 years and we will apply that experience and expertise to every case we file.
What is bankruptcy – When should you file?
The decision for when to file is highly dependent upon your own financial situation and needs. Many people file in the first quarter of the year, using their tax return to cover attorney fees and bankruptcy costs. Conversely, job loss, threat of losing your home or having a vehicle repossessed may result in your decision to file bankruptcy sooner. When considering bankruptcy, outline your needs and debts in consultation with an expert to help determine the best timeframe for you.
Contact the Experienced Bankruptcy Experts at Burrow & Associates
If you are considering bankruptcy, it’s important to know all of your options. Experienced bankruptcy attorneys are your best guide through the decision making and filing process. If you are struggling with debt or a recent job loss, please contact the bankruptcy experts at Burrow & Associates at (678) 323-2394 to help you determine whether bankruptcy is the right choice for you.