Being heavily in debt is not necessarily a reflection of your character, thriftiness, and work ethic. Good people accumulate debt that they cannot repay. You may need emergency medical care and can only pay for it with your credit card. You may have a good-paying job one day and the next find out that you have been laid off. You may have to take in an infirm relative and find yourself unable to cope with the extra costs.
If your financial situation becomes unsustainable, it may be best to make a new start. Filing for bankruptcy may be your best way of doing this.
Why You Need a Lawyer
It is possible for you to file the paperwork for bankruptcy all on your own. However, bankruptcy laws are extensive and complex. Although they have been designed to protect ordinary people against extreme poverty and destitution, they are not intuitive. A bankruptcy lawyer can help you leverage the law in your favor. Your lawyer will know enough about the law to make it work for you.
Even on the technical side, you will need to meet certain criteria and deadlines. Your lawyer will keep you on track for both. They will ensure that everything is in order for your debt to be discharged.
The Protection Offered by Bankruptcy
The moment that your bankruptcy goes through you will be under the protection of the courts. Creditors will be under orders to cease all emails, phone calls, etc. Indeed, if you continue to be harassed by creditors after the discharge of your debt, then you should refer them to your attorney. The latter will know how to deal with the matter.
Chapter 7 Bankruptcy
This is the most common form of bankruptcy for individuals. Here are the forms of debt that can be discharged under personal chapter 7 bankruptcy:
-credit cards
-medical bills
-utility bills
-personal loans
-auto loan repossession deficiencies
-some types of IRS debt
You should also be aware of the debt that cannot be wiped out through a chapter 7 filing. These include:
-student loans
-child support
-spousal support
-some types of IRS debt
When you file for chapter 7 bankruptcy, you will need to list all assets and all creditors. The process itself is not very time-consuming. You will need to file the paperwork and a few weeks later attend a meeting of creditors. The latter rarely attend such meetings. You, your lawyer, and the court appointed trustee are the only people likely to be in the room. The entire discharge process takes less than an hour. At that point, you will be free of the types of debt mentioned above.
In most instances, you will not have to give up possessions or liquidate assets. Your lawyer will ensure that you can continue to live in reasonable comfort as you undertake the arduous journey of rebuilding your financial life.
If you are heavily in debt, then you should consider filing for bankruptcy. You should Click Here to get your options.
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