There are many different scenarios and circumstances that can land an individual in debt. When that individual is no longer able to make the necessary monthly payments, it is critical that he or she reaches out to a law firm that specializes in bankruptcy and debt relief. It is important to be proactive in order to regain control of your finances as quickly as possible.
If it has been determined by your bankruptcy lawyer that filing for bankruptcy is the ideal option for you, then you will need to figure out under which chapter you should file under.
Below are a few of the most common chapters that individuals will file under to start their way to a better financial situation:
If you have a large amount of unsecured debt with little to no extremely valuable assets, then filing for Chapter 7 is usually the ideal route to go.
All you have to do is pass a Means Test to determine your eligibility based on your income verse your total debt. Once approved, your bankruptcy lawyer will be able to walk you through the rest of the process.
Chapter 13 is another great option for those who do not qualify to file under Chapter 7. Here, your bankruptcy attorney will negotiate new payment terms that better fit your financial picture.
This will allow you to still make payments toward your debt but in a much easier way that will not put as much financial strain on you as in the past.
In most cases, small business owners or those with high incomes and high debt will file under Chapter 11. Chapter 11 is similar to Chapter 13 in that you will negotiate new payment terms, but it is a much more complicated process and requires the assistance of an experienced bankruptcy attorney.
How Do You Know if You Should be Considering Bankruptcy?
From maxing out credit cards to borrowing from family and friends on a consistent basis, there are some warning signs that may mean it’s time to consult with a bankruptcy attorney. For example, if you are facing the possibility of foreclosure or repossession, this is the ideal time to seek out debt relief options.
Or, if you are constantly reaching into your savings or retirement funds, this is also a good sign that filing for bankruptcy may be the best option for you. Be sure to discuss with a reputable bankruptcy law firm before making any decision to ensure you are going down the right avenue that will lead you to financial freedom once again.
Loan Lawyers – Your Reliable Jupiter Bankruptcy Attorneys
At Loan Lawyers, we have over 100 years of combined experience in helping our customers overcome their debt and have room to breathe financially. On top of bankruptcy services, we also provide foreclosure defense and many other debt relief options.
For more information on our Jupiter bankruptcy services, contact one of our Jupiter bankruptcy attorneys today.