Bankruptcy

What is Bankruptcy?

As far as debt management goes, bankruptcy is as low as you can go. But there remains a common misconception about the process of filing for bankruptcy. See, there are so many people out there who think that if they file for bankruptcies their debts will be instantly forgiven and they'll get a new lease on their financial life. That's not the case. If you file for bankruptcy, you'll need the assistance of an attorney and be subjected to an in-depth analysis of your complete financial picture. Your spending habits and credit history will be highly scrutinized, and you'll face a long road back to solid financial footing.

There exist two different types of bankruptcy: Chapter 7 bankruptcy and Chapter 13.

• Bankruptcy 7. This particular type of bankruptcy forgives the debt you owe completely, absolving you of any repayment plans even if it does shatter your credit for the extended future.
• Bankruptcy 13. When you file for Chapter 13 Bankruptcy you're putting yourself in a position to enter into a full repayment plan. Your debt accrues no interest, but you will be faced with monthly payments for a long period of time.

When you file your bankruptcy you'll face an in-depth analysis of your assets. If you have enough assets to make a decent dent in your debt obligation, you'll be asked to liquidate those assets. The money accrued from the liquidation will go goes your debt obligation.

Bankruptcy Protection

Bankruptcy protection provides you with the time for you and your attorney to get your life in order before the trustee of the bankruptcy begins the liquidation process of your assets. Even if you don't have any assets, a creditor can still attach your future income to your debt payments. Bankruptcy Protection makes it such that you can prevent them from doing that.

If you feel as though you may be a candidate for bankruptcy, talk to us. We'll put you in touch with a licensed bankruptcy attorney, someone who can help you do a true analysis of your financial picture.