Filing for bankruptcy is a serious decision. Our attorneys at King & King understand that and are here to help. We will present you all your options and help you decide which bankruptcy will work best for you. Here are some common reasons why someone may consider filing for bankruptcy:
Overwhelming debt: If your debts are so high that you cannot realistically see a way to repay them, even if you were to stop using your credit cards and tighten your budget, bankruptcy may be a good option.
Constant harassment from creditors: If you are being constantly pursued by creditors or debt collectors, bankruptcy can help provide relief from this harassment.
Threat of wage garnishment or property seizure: If your creditors have obtained a court judgment against you and are threatening to garnish your wages or seize your property, bankruptcy can help protect these assets.
Unexpected life events: If you have suffered a significant setback such as a job loss, medical emergency, or divorce, bankruptcy may be a good option if you cannot manage your debts.
What Type Of Bankruptcy Is Right For You?
Chapter 7 bankruptcy is often referred to as a "liquidation" bankruptcy, as it involves selling certain assets to pay off debts. Chapter 7 is typically best suited for individuals with few assets and a large amount of unsecured debt, such as credit card debt or medical bills.
If you are considering Chapter 7 bankruptcy, here are some factors to keep in mind:
Eligibility: You must pass a means test to determine if you are eligible to file for Chapter 7 bankruptcy. This test compares your income to the median income in your state and considers your expenses and debts.
Exemptions: Some assets, such as your home, vehicle, and personal belongings, may be protected under state and federal exemptions.
Timing: The process of Chapter 7 bankruptcy typically takes about 4-6 months from start to finish.
Here are some factors to consider if you are thinking about Chapter 13 bankruptcy:
Eligibility: To be eligible for Chapter 13 bankruptcy, you must have a regular income and your debt must fall within certain limits.
Repayment plan: In Chapter 13 bankruptcy, you will propose a repayment plan to repay a portion of your debts over a three-to-five-year period. This plan must be approved by the bankruptcy court.
Protection of assets: Chapter 13 bankruptcy allows you to keep your assets, such as your home and vehicle, as long as you make the payments required under your repayment plan.
Timing: The process of Chapter 13 bankruptcy typically takes three to five years from start to finish.
If you are considering bankruptcy, call the bankruptcy attorneys at King & King who can evaluate your specific financial situation and help you determine the right option for you. Call Today at 404-524-6400.
