Most people don’t expect they’ll have to file for bankruptcy in the future but often choose to take the step when they struggle to repay the debt that they’ve accumulated. Although filing for bankruptcy is never easy, it can make it easier to regain your financial standing and have hope for the future. Here are a few important facts to learn about filing for bankruptcy to ensure you’re prepared.
1. There are Two Main Types of Bankruptcy
Most people who choose to file for bankruptcy choose Chapter 7 or Chapter 13, depending on their situation. Chapter 7 is a simpler and quicker process, allowing you to wipe out most of your debt. Chapter 13 is better for individuals who have enough money to repay their debts but prefer a repayment plan.
2. Legal Assistance Is Available
It can be difficult to navigate the legal process of bankruptcy and encounter delays if you lack experience and knowledge. Hiring a bankruptcy attorney like John Mufson can allow you to understand the best type of bankruptcy to file for and will allow you to have assistance in the forms that need to be submitted. It can also allow you to learn about the assets that are protected, and you’re not at risk of losing.
3. Avoid Spending a Lot of Money
Once you decide to file for bankruptcy, it can be easy to go on a shopping spree or spend a lot of the money in your 401(k). A Boynton Beach bankruptcy attorney will warn you to avoid accumulating more debt, which can cause your creditors to object. It’s also important to avoid touching your retirement, which is protected after going through bankruptcy.
4. Not All of Your Debts Are Eliminated
Bankruptcy won’t solve all of your problems and still requires paying off some of your debt. Both taxes and child support aren’t wiped out, making it necessary to be aware of how much debt you’ll still owe after the process is completed. This can also allow you to determine if it’s worth going through bankruptcy, depending on the type of debt you owe.
5. Other Options Are Available
Keep in mind that there are still other options available aside from bankruptcy, depending on your situation. Talk to a Boynton Beach bankruptcy attorney to determine if you can find financial relief by obtaining credit counseling services or by learning about your rights through The CARES Act, which prevents some homes from going into foreclosure. Investing the other options that are available with the help of a professional can allow you to make an informed decision that is most beneficial for your future and doesn’t lead to further issues or problems in your life.
As you start working with a bankruptcy attorney, it can be easier to navigate the process and learn more about your rights. Contact us today to learn more about our services and schedule an appointment to obtain legal representation if you plan to file for bankruptcy.