You’ve worked hard to build up everything you own. From second (or third!) properties to priceless collections, cars, and even the appliances in your kitchen. It’s a testament to all your hard work, and in a perfect world, you’d never have to give anything up.
But, as a bankruptcy lawyer like our friends at the Law Offices of Neil Crane can explain, bankruptcy can happen to anyone, and anyone might find themselves in a tricky financial situation. Whether it was through bad investments or a business going under, you might be forced to liquidate your assets to make good on your debts.
When the worst-case scenario happens, you’ll want a lawyer on your side to help you hold onto what matters most. Read on to learn more about the impact of bankruptcy, and see how the right bankruptcy lawyer can help.
Why Do I Need to Liquidate?
There are many reasons you may have to liquidate your assets. Liquidation usually happens when someone declares bankruptcy, but it’s not the only reason you might have to sell off your belongings. For example, you might be on the receiving end of a nasty lawsuit, and selling your assets off may be the only way you can pay off your legal fees. In a similar vein, you may be experiencing a bitter divorce, and – like with the lawsuit – the only way to pay off your legal fees is by selling off your assets to satisfy your creditors.
Do I Have to Liquidate When I Declare Bankruptcy?
When it comes to lawsuits, liquidation is mainly associated with Chapter 7 bankruptcy. Chapter 7 is an enticing way out from under serious debt, but it’s not as easy as it sounds. As we mentioned, you’ll have to sell off most (or all) of your assets to satisfy your creditors, and your credit score will take a major hit. It’ll take years to climb back to financial security after declaring bankruptcy, and during those years you can expect it to be much more difficult to apply for loans, housing, and even jobs.
If you don’t want to file Chapter 7 bankruptcy, you may be able to file Chapter 13 bankruptcy instead. Filing Chapter 13 bankruptcy means you won’t necessarily have to sell off any assets, but you will have to come up with a satisfactory financial plan that will allow you to eventually pay off your creditors. Chapter 13 bankruptcy takes a lot of work, and it’s best to contact a qualified bankruptcy attorney who can keep you on the right track.
What Can a Bankruptcy Lawyer Do for Me?
If you want to protect your assets while navigating through your financial challenges, it’s in your best interests to contact a qualified bankruptcy lawyer. The right attorney can help you decide which option is best for you, and will have plenty of experience when it comes to protecting your most valuable assets from liquidation.
Bankruptcy is a long and painful process, but it’s also a new beginning. When you get in touch with a bankruptcy lawyer, you’re getting a chance to start from a blank slate – or, if you want to avoid liquidation, you and your bankruptcy lawyer can work together to develop a financial plan that will slowly but surely bring you back to financial stability.
It’s never too late to contact a bankruptcy lawyer. Reach out to one today, and get started on your financial recovery.