It can be difficult to look at your bank accounts and see that you don’t have money to spare. You may be struggling with heavy debts and wondering if you’ll ever be able to get back on track.
If you’re starting to miss payments or are finding that you are overwhelmed with debt you don’t believe you can pay back, then it’s time to look into bankruptcy. Bankruptcy can be an excellent way to take back control of your finances and to eliminate your debts.
If you have debt, a bankruptcy could help
The truth is that debts quickly become overwhelming and may hold you back from the things you want to do. If you are feeling stressed by your debts and feel you can’t pay them back, then a bankruptcy may help.
There are two primary forms of bankruptcy for consumers, Chapter 7 and Chapter 13. Depending on the amount of income you have and your ability to pay, you will use one of these forms.
Chapter 7 bankruptcy uses the liquidation of your nonexempt assets to pay down what you owe. Comparatively, Chapter 13 bankruptcy uses a payment play to repay your debts over the next three to five years.
Either one of these bankruptcy options may be a good choice for you depending on the amount of debt you have and if you have exhausted other debt-relief options.
When do you know that it’s time to file for bankruptcy?
If you have already attempted to repay your debts, negotiate them down and repay them but haven’t had lucky with gaining headway on repaying them, then you may want to talk to an attorney about filing for bankruptcy. You’ll need to complete a few tasks before you can pursue the bankruptcy, such as going through a credit counseling course. Your attorney will also want to talk to you about the debt-relief options you’ve tried to make sure that a bankruptcy is really the right choice for you.
If it is the right option, your attorney can help you fill out the appropriate paperwork and get started on your bankruptcy right away. That way, you’ll be able to get a fresh start sooner.