Bankruptcy is a way for those who have found themselves in a pile of debt that they cannot simply overcome to get a fresh start financially. It is quite common for those facing overwhelming amounts of debt to hesitate in moving forward with filing for bankruptcy because they feel as though it is embarrassing or shameful to do so. However, there are thousands of individuals, including those in high-profile positions, that file for bankruptcy to get ahead of their debt and start over.
Once you’ve consulted with an experienced law firm that specializes in bankruptcy and debt relief, you must then determine the right chapter of bankruptcy to file under. The three most common chapters of bankruptcy are Chapter 7, Chapter 11, and Chapter 13.
Chapter 7
Chapter 7 is typically one of the easier chapters to file under, especially if you do not own many assets but are facing unsecured debts. To qualify for this chapter, your income is weighed against your total debt to see if you are eligible. If so, your bankruptcy lawyer will be able to walk you through the process and get you on the path to financial freedom once again.
Chapter 13
For those that are not eligible to apply for Chapter 7, then they can usually file under Chapter 13. Under this chapter, individuals will receive a new set of agreed-upon payment terms that allows them to pay of their debt in an easier way that suits their current financial picture.
Chapter 11
Chapter 11 is usually for those with very high incomes but also very high debts. In most cases, this could be a business owner that agrees on new payment terms so that he or she can continue to make payments on their debts, while still keeping their business up and running.
What Are Some Warning Signs You May Need to File for Bankruptcy?
There are a few warning signs that you should pay attention to before you file for bankruptcy. Some of the common signs include:
- Using your credit card for significant bills, such as your mortgage payments or rent payments
- Frequently pulling money from your savings or retirement funds
- Always asking for financial help from your parents, friends, or other family members
- Increasing credit card rates that make it nearly impossible to pay off the credit cards
- Threats of foreclosure or repossession
Loan Lawyers – Your Reliable Lake Worth Bankruptcy Attorneys
Not only are we able to assist with the bankruptcy process, but we can also help you with other debt-relief options. One of these ways is to help you retain the rights to their home and other valuables by providing a solid defense against foreclosure.
For more information on our Lake Worth bankruptcy services, contact one of our Lake Worth bankruptcy attorneys today.
