The benefit to filing for bankruptcy is the fresh start it provides to those that have gotten behind on important payments. However, simply being a little behind does not mean that you should file for bankruptcy. Making this claim involves significant thought and consideration about the potential outcomes.
Filing for bankruptcy prevents creditors from seizing your property until the specifications of the debt has been worked out, including eliminating the necessary debts. This move can allow you to catch up on payments, reduce the balance of loans, and work out agreements with creditors for you to get your finances on track. If you decide to file for bankruptcy, the next step is deciding which form of bankruptcy is right for you. Chapter 7 bankruptcy is only available to those whose income is low enough to qualify. Chapter 13 bankruptcy only applies to those with debt fall under a certain amount. Choosing which option to go with makes a difference. If you are wondering whether bankruptcy is the right option for you, consult with a bankruptcy attorney to learn of your available options and how bankruptcy will affect you moving forward. Our firm offers free initial consultations for those choosing to explore their options to get out of debt.
