Many people are in a financial bind these days, leaving them unable to pay their bills. If you can’t make the minimum payment on your credit cards each month and have a mountain of other debts that you can’t foresee digging yourself out of within five years time, you may want to consider filing for bankruptcy. Before you do however, it’s important to understand that bankruptcy is not an ideal situation. Depending on the type of bankruptcy that you file for, can make the difference between losing your most important assets and keeping them.
Saving your Assets
There are many misconceptions about bankruptcy. Some think that by filing for bankruptcy, it will result in losing your home, car and business. While this does have the possibility of happening in the most extreme of cases, it isn’t an absolute. Depending on whether you are filing for personal or business bankruptcy, you may be able to spare your biggest assets if the court finds that even after you sold these things, you will still have an outstanding balance. With the right Boston law firm defending you, you may be able to escape losing your most important assets altogether.
Chapter 7 Bankruptcy
There are two types of bankruptcy you can file for. Chapter 7 bankruptcy involves liquidating your assets in order to pay their creditors off. While this can leave some people feeling vulnerable and scared that they will lose their home, some of their belongings can be spared if the court finds that you will still owe money after they lose their assets. Unlike Chapter 13 bankruptcy, Chapter 7 is a way for people to eliminate debts quickly and once and for all, in the hands of the court. When filing for Chapter 7 bankruptcy, it’s important to hire one of the many law firms in Boston to handle your legal questions and representation.
Chapter 13 Bankruptcy
When you file for Chapter 13 bankruptcy, you are in for a much different legal situation. Chapter 13 allows you to set up a payment plan to pay back what you owe. Although you aren’t in jeopardy of losing your home, you must pay off your debts within 3-5 years. If you can manage that, then Chapter 13 is a preferred way to file for many people who want to hold onto their assets.
Filing for Emergency Bankruptcy
Filing for emergency bankruptcy is important when you have received a warning letter from your lender of their intentions to foreclose. To file for emergency bankruptcy, several things are needed. First, make sure to have an experienced bankruptcy lawyer representing you and secondly, draft a formal letter requesting emergency bankruptcy which includes information about your creditors. So that you act quickly and thoroughly, it’s important to have all the necessary paperwork completed with the help of your lawyer.
Related posts:
- Will I Lose my Home in Bankruptcy?
- Bankruptcy Attorney Fees
- Claim Bankruptcy in California
- Bankruptcy Petition Preparers
- Improve Your Credit Score after Bankruptcy
- What a Bankruptcy Attorney Can Do For You
- Chapter 13 Bankruptcy Requirements
- Is Bankruptcy For Me?
