When you’re in financial distress, it can feel like you’re living in a prison cell. No one wants to go through life with a huge financial burden on their shoulders weighing them down. At some point, when your finances get the best of you, you may need to consider whether filing for bankruptcy makes sense. Filing for bankruptcy is a last resort, but it can release you from your debts and make you feel free again.
As a citizen of the United States, you may file for bankruptcy and give yourself justice by doing so. You’ll no longer spend hours worrying about what to do or feel like you’re putting your family in harm’s way. The options when filing for bankruptcy can be confusing and complex. If you need an attorney to help you through the filing process, you can click here.
Chapter 7 bankruptcy, often referred to as straight bankruptcy, is a simple way for you to eliminate any unsecured debts, such as personal loans and credit cards, by surrendering your assets. You’ll liquidate your assets under Chapter 7 bankruptcy, and this money will go to any creditors you owe. You won’t need a repayment plan under Chapter 7 because the liquidation of your assets should cover your debts.
Often used by businesses, Chapter 11 bankruptcy allows those who file to restructure their debts and create a repayment plan to pay the debts back over time. If you own a business that you’re trying to keep active while filing for bankruptcy, then Chapter 11 may be a good option for you. The repayment plan you create in Chapter 11 should prioritize time-sensitive creditors and categorize your debts.
Chapter 13 helps to eliminate debt while also allowing repayment plans of three to five years for a portion of the debt you owe. Chapter 13 is a good option if you can afford to pay some of your debt but not all of it. You may consider Chapter 13 if you’re trying to save your home from foreclosure.
When deciding between options for bankruptcy, you should speak with an experienced attorney and assess your financial situation. Chapter 7 is one of the fastest options, but you may lose all of your assets. Chapter 13 and Chapter 11 may take longer, but you can keep some of your assets. Whatever option you choose, you can feel hopeful knowing that there’s a way out of your situation and a brighter future ahead.