Next to debt, filing for bankruptcy can cause equal anxiety and fear. Even so, the idea that you have a possible solution gives you an amount of hope.
First Things First
Like a medical diagnosis, another opinion can help. Talking with an attorney can relieve some of your stress related to bankruptcy.
A legal professional will present you with options that help you make your decision. And speaking of options, you have two when considering bankruptcy.
Chapter 7 Bankruptcy
This debt solution focuses on your unsecured debt such as personal loans and credit cards. Some of your assets could be at risk to settle although most keep theirs.
Chapter 13 Bankruptcy
This option basically reorganizes your debt. You're placed on a repayment plan that allows you to pay back your creditors over period of time. An income source is required for payments and you're seldom required to liquidate your assets.
Filing for bankruptcy removes the burden of debt for the most part. But it damages any good credit history you've earned. Plus, it can take up to 10 years to remove the negative impact.
Other bankruptcy impacts include:
- Informing future employers, medical forms, and government reports
- Lender trust when applying for loans
- A drop in your overall credit score
These are common think-twice scenarios. Again, it's vital that you consult with an attorney that specializes in bankruptcy.
A legal perspective will put to rest some of the myths of bankruptcy. Their counsel will also give you some hope related to debt elimination and solutions to get you back on solid financial ground.
Contact our law offices with your questions, concerns, and fears about bankruptcy filing. Schedule a consultation to discuss your options.