There are times when you have to deal with the fact that your financial situation is not looking so good. When that happens you may have to sit down and check out your options for regrouping. You could get counseling to help consolidate your debt into one low payment or you can file for bankruptcy. It would be better to file for bankruptcy because you get have your debt erased more quickly with a simple payment plan that will get you back to a fresh start. It’s not the easiest choice to make but when you really need the help, it is the better choice. There are several different types to look at, but only two of them are better choices.
Filing for Chapter 7 bankruptcy is the most common filing and it’s for the everyday individual. There are married couples that decide to file because they want to get their finances in order and just can’t seem to do so. With this type of help, they are able to start over and come out better the next time around. When you file for Chapter 7, there is a certain process you go through that requires taking a credit counseling class. You must do that in order to have certain debt discharged. Just so you know, there are certain debts that won’t go into the filing. Student loans, property taxes, and liens are not allowed under any bankruptcy filings. You must get all of your dischargeable debt together in order for the filing to take place. Also, there must be a meeting of the creditors to see who wants to dispute the filing. This is where you need the most help, and a bankruptcy law firm Birmingham AL will get you through these steps correctly.
Chapter 13 bankruptcy may be filed if you need a longer repayment period. It has its pros and cons, but you still come out looking pretty good even though it may feel embarrassing at first. There is no shame in filing this type of bankruptcy, and you shouldn’t feel bad about yourself for doing it. If you need five years to pay off your debt then this is the filing status you need. You may have to give up certain property, and your debtors can’t expect you to pay them in full. The property that you are actually making the payments on, you can keep. Also, the money to repay is going to come from whatever you have left over after paying for your living necessities. The credits cards will be lost as they will be part of the repayment, and your credit will be affected for up to 10 years.
You should not feel ashamed because you have to file either Chapter 7 or 13 bankruptcy to get your finances back on track. There are circumstances that lead to this, and some of it may get beyond your control. You will have victory over this.