Those facing financial distress know how draining it can be to have to face calls and threats from your creditors every day. Whether your finances have spiraled out of control because of your poor spending habits or because of circumstances that were out of your control, such as unexpected health problems or job loss, you should know that there is help available for your situation. Check out the following ways that a bankruptcy petition may be able to help you get back on track with your finances:
Chapter 7 Bankruptcy
While there are different types of bankruptcy, you can file, there are circumstances in which Chapter 7 is a good option. Chapter 7 bankruptcy can provide the following benefits to you as a consumer:
- The Chapter 7 bankruptcy process doesn’t last as long at Chapter 13. Instead of three to five years, you’ll only spend about three to six months in the bankruptcy process.
- Chapter 7 bankruptcy provides Debt Relief by wiping out your unsecured debt so that you can start over with a clean slate. While not everything can be included, most of your credit card and other unsecured debt can be eliminated.
Chapter 13 Bankruptcy
If Chapter 13 bankrupts turns out to be a more viable option, you can expect the following financial advantages:
- Chapter 13 bankruptcy allows you to create a viable payment plan for repaying your loans and credit card bills. This payment plan will be tailored to your budget so that you aren’t paying out more money each month than you can really afford.
- Much of your unsecured debt that hasn’t been paid back at the end of your repayment plan can be wiped out, which means you can move on and begin the process of rebuilding your financial portfolio.
No matter which type of bankruptcy you are considering, it’s important to make sure that you consult with an attorney before, during, and after the filing process. Not only will a lawyer make sure that you meet the eligibility rules for the type of bankruptcy that you would like to apply for, but they’ll help you avoid critical mistakes that could result in a denial of your petition. When you allow an experienced legal professional to assist you in the bankruptcy process, you’re much more likely to reach your original goal: getting the Debt Relief you need to brighten your future and get your finances back on track.
