In many cases, bankruptcy offers a fresh start. It can be a reasonable option for individuals and businesses to manage their overwhelming debt. It is important to choose the type of bankruptcy that is best for you. Consulting a bankruptcy attorney can get the process started. Once you finish filing for bankruptcy and solidify the process, it is important that you have an idea of what to expect.
Filing Chapter 13 bankruptcy means that you will be repaying your debt over time. All the money you owe is restructured, as you make payments to the sum. The payment plan will be constructed by the bankruptcy court and the debtor. These plans usually last about three to five years. It is essential to keep up with your payment plan, after which your debts will be discharged.
Chapter 7 bankruptcy is commonly referred to as liquidation. Those that file are given immediate relief from harassment by creditors. There is a possibility of losing property but about 90% of cases experience no loss of assets. Creditors are also banned from any legal action once Chapter 7 bankruptcy is filed.
Life after bankruptcy is characterized by the absence of harassment from creditors. Bankruptcy gives you an opportunity to get your debt under control, so that your financial woes can be alleviated. Some individuals may worry that they will never be able to make big purchases after they file. You will have to work to re-establish your credit, but you can easily buy things which you can afford. Certain companies even offer lines of credit for customers that have filed.
You should understand that bankruptcy does not eliminate every type of debt. Child support, alimony, and many types of student loans do not fall under the umbrella of bankruptcy. You should know which payments will remain unaffected by bankruptcy.
Your financial stress will be greatly improved; filing can open many different doors for numerous individuals. Find out if bankruptcy is right for you by contacting Citizens Law Group. Our experienced attorneys work with you every step of the way. We keep you in the loop before, during, and after filing for bankruptcy. Contact our office today to begin your fresh start.