You’ve overspent on your credit cards, and then you had major car repair expenses and some problems at work. The bill collectors are closing in and prospects for the future look bleak unless maybe your lottery ticket pays off. But you’ve stopped believing in miracles. All you would really like is some relief from day-to-day worries, and perhaps some additional time to pay your debts. You have a job, and some assets. For now, you have a place to live and you can still afford groceries, but you know you have to be careful, and there’s no money for fun; certainly not enough to handle another emergency.

 

A friend suggested filing for bankruptcy, but another acquaintance said that you have to be totally broke and in danger of being homeless before that’s an option.

What’s the Truth About Bankruptcy?bankruptcy protection

Bankruptcy protection is meant to be an option for individuals and families who are “in over their heads” with no other immediate financial alternative.There are basically two types:¬†Chapter 7 can totally relieve any obligation to repay debts covered by the bankruptcy; Chapter 13, offers a structured, court-supervised method of repayment over time. Both eliminate immediate stress, but each has slightly different requirements, and you will want to seek professional advice before proceeding.

If you consider filing for bankruptcy, there are specific procedures you must follow, and you must qualify under both federal and local laws. The record will become a part of your credit history for at least seven years. Filing for bankruptcy protection is an action not to be taken lightly. You should seek reputable legal advice, and you must, in almost all cases, complete a financial management course prior to filing.

Many people find the filing procedure difficult, but it is imperative that you identify and place a value on all sources of income, as well as personal possessions, including a home, land and automobiles, but also including furniture, art, jewelry and other personal possessions. In some cases, a court will determine that debt can be repaid by liquidating assets. It is then that a person is said to have “too many assets” to qualify for bankruptcy.

If you have questions, why not call for advice today? Our qualified legal team is ready to help you explore your options. To get started, schedule an appointment online or call us at 770-203-2747.