Are You Considering Bankruptcy?
With piles of overdue notices and creditors harassing you for payment, you might be wondering if filing for bankruptcy is the right path for you. Read the following to see if a bankruptcy sounds like the financial route you want to take
What Are the Types of Bankruptcy Available to Me?
The type or “chapter” of bankruptcy right for you depends on the type of debt you hold, your assets, and how you want to come out after filing.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy allows you to clear your unsecured debt like credit cards, medical bills, payday loans, personal loans, and other bills; however, you may have to liquidate your assets like your home and property to pay back your creditors. After a Chapter 7 bankruptcy, you’ll be mostly debt free but without any assets.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy allows you to keep your assets by restructuring your debt so that you pay back your creditors the partial debt amount over a span of a couple of years. So this option is for those who don’t want to lose their assets but are okay with making payment to their creditors.
With so many factors involved in determining the right chapter for bankruptcy, it’s best to consult with an experienced bankruptcy lawyer. A bankruptcy lawyer will review your financial situation to determine if filing for bankruptcy is right for you and the bankruptcy chapter that will align with your financial plans.
How Long Does a Bankruptcy Take?
The amount of time it takes to file for bankruptcy depends on the bankruptcy chapter, person’s financial situation, debt and more. Most of the time spent is gathering all the documentation and information. This includes a list of all debts, income, assets, inheritances, and gifts. It’s best to consult with a bankruptcy lawyer to determine the length of time expected for a bankruptcy filing. The attorney will have experience with bankruptcy filings and will be able to give you an estimate of time.
How Much Does a Bankruptcy Lawyer Cost?
On average, a bankruptcy lawyer will cost somewhere between $1500 and $4000, however, the cost of your bankruptcy lawyer will depend on a few things like bankruptcy type or “chapter,” where you live, the difficulty of your case, filing fees, and how experienced the attorney is. This is why it’s best to consult with a bankruptcy attorney for a free consultation. He will be able to determine the difficulty of your case and provide you with a quote and possibly a payment plan.