Is Filing for Bankruptcy Always a Bad Idea?
Filing for bankruptcy is often the last resort for people, but sometimes they hesitate for far too long before filing because of the incorrect stigma that has been placed around bankruptcy. People sometimes feel like they will not be able to have a good financial future if they file for bankruptcy, but sometimes the opposite is true. Bankruptcy can offer a brand new lease on life for people. Rather than feeling weighed down in debt, a person is able to get a fresh, debt-free start.
Bankruptcy Can Consolidate Your Debt
People who are struggling will often file for either Chapter 7 or Chapter 13 bankruptcy. This will be decided by a few factors such as how much a person makes, whether they have many different assets – particularly ones that they want to keep – and how much debt is left. By filing for Chapter 13 bankruptcy, you can consolidate your debt in order to be able to pay back your debtors in a way that will not significantly burden you or your family.
Bankruptcy Varies from Person to Person
Your credit will be affected by filing but can be rebuilt immediately after filing for bankruptcy after you file. Your lawyer will try to set you up for success by offering tips and advice on rebuilding your credit and how to move to a more healthy and stable financial future. Your situation will depend on how much money you make, how much spending you can eliminate from your routine, and other factors. Your lawyer may even recommend speaking with a financial planner to determine a good way of moving forward from filing for bankruptcy.
Hiring a Lawyer
If you or someone you know is struggling financially, you can reach out to a bankruptcy lawyer, like one from Carolyn Secor, P.A., to go over all of the specifics for your finances. Each situation is different and needs to be handled as a stand-alone situation. Your lawyer will be able to look at everything from all of your debts to the money that you are bringing in to see if filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy would be the right option. Your lawyer may also recommend not filing for bankruptcy at all, but rather coming up with a different way to pay back your debts. No matter what, a lawyer can help you with a seemingly impossible situation.