If you face considerable financial troubles, you are not alone. Numerous people across the country amass serious debt that leaves them wondering how they will get back on top of their finances. Luckily, you do not have to suffer silently, as bankruptcy options exist that could potentially help you address your debt liabilities in an effective manner.
First, finding out about the different types of personal bankruptcy may help you better understand which avenue is best for you. The two most common types of bankruptcy are Chapter 7 and Chapter 13.
Under Chapter 7, qualifying individuals liquidate assets in order to repay creditors. This route typically takes only months to complete, but it does involve the loss of property through the liquidation process. It is important to understand, however, that this option does not mean that you will lose everything, as certain property may be exempt. The majority of personal bankruptcy cases involve Chapter 7.
With Chapter 13 bankruptcy, rather than liquidating assets, qualifying individuals work with a court-approved repayment plan to pay back debts. This process takes longer than Chapter 7 because it involves repayment taking place over the course of three to five years. Chapter 13 may prove more complicated than other courses of action, so you may wish to determine which option could best suit the details of your case
In order to move forward with either type of bankruptcy, you must determine whether you qualify. Your income may play a considerable role in determining your eligibility. For instance, if your income is above a certain level, you may not qualify for liquidation but could qualify for repayment.
Prepare to divulge information
During bankruptcy proceedings, you will need to bare your financial details to the court. As a result, much of your personal life may become more public than expected. However, by understanding this aspect, you may not find yourself caught off guard. Instead, you may have the opportunity to get your information in order in an effort to better help your case move forward.
Understanding qualifications and what information is pertinent to your bankruptcy petition may prove challenging. However, the effort required should not deter you from potentially moving toward financial freedom. Indeed, the benefits of a successful bankruptcy case may allow you to feel as if you have gained a fresh start in the future.
There are also legal professionals who could help you better understand your options and what filing for bankruptcy could mean for you. Experienced Florida attorneys could assist interested individuals to get back on the right financial track.