If you’re struggling to pay your bills and considering filing for bankruptcy, it’s important to know why you’re filing and if it’s the best option for you in your financial situation. Many people think that if they file for bankruptcy it’s because they don’t have any other options to eliminate their debts. This isn’t always the case though, and working with a bankruptcy attorney can help determine the best option for you. Our team at The Law Offices of John E. Mufson are here to help you regain your financial footing and eliminate your debt in Delray Beach.
Should I file for Bankruptcy in Delray Beach?
This is the first question many people ask themselves when they become overwhelmed with debt. They tend to think this is the only option for them and it’s something they have to do. There are other options, but sometimes bankruptcy can be the best option for you.
There are two types of bankruptcy that are most common for individuals. They are chapter 7 and chapter 13 and there are some differences between the two. Chapter 7 bankruptcy is when you must liquidate your assets in order to pay back as much or your debts as possible. This allows you to have a clean slate and start over, and you can work to avoid falling into the debt that caused you to file for bankruptcy the first time.
Chapter 13 bankruptcy is for those who want to avoid the liquidation process of chapter 7 bankruptcy. With chapter 13 bankruptcy you’ll be put on a payment plan to help pay back the debts you’re in. After a period of time, usually 3 to 5 years, your payment plan will be up and the rest of your debts are forgiven.
When you file for bankruptcy the harassing creditor calls will end immediately. You can also halt the foreclosure process if your home has been put into foreclosure. There are many times where filing for bankruptcy can be the best option for you, but also times where you might want to explore other options. To learn more about the different types of bankruptcy in Delray Beach and to find out what may be the best option for you, call our team at The Law Offices of John E. Mufson today.