There are so many different things that a person needs to think about when they are trying to decide whether or not they should be filing bankruptcy. First, you need to know what the different options are when it comes to filing bankruptcy. In the United States, there are two different options for consumer bankruptcy. The role of bankruptcy attorneys is to help you look at the different types of bankruptcy and figure out which one best fits your unique situation.
Types of Bankruptcy
Chapter 7 is the first and most common type of bankruptcy. It is not uncommon for bankruptcy attorneys to recommend Chapter 7 to anyone who has a lot of debt. Chapter 7 is the only bankruptcy option that will wipe your slate clean. The only downside to filing Chapter 7 is the fact that some of your assets will be seized and liquidated in order to pay back some of the money that you owe.
Chapter 13 bankruptcy is considered to be the more complicated option. It is also considered by many to be the more redeeming option as well. When you file Chapter 13 bankruptcy you are telling the court that you have a lot of debt you are having trouble paying off in a timely manner, but you do want to pay it off. The court will help you set up a new payment plan that allows you to pay off all of your debts over the next 3 to 5 years without having to struggle to pay your bills as well.
Understanding What Bankruptcy Means
When you do business with a law firm such as Sean C. Paul, it is important to make sure you ask them what filing bankruptcy is going to mean for your future. This is because bankruptcy is something that will stay on your record for the next ten years. It is also not a quick fix solution to your process as it can take a very long time for a bankruptcy claim to be processed.
It is also very possible that the lawyer you consult with could tell you that bankruptcy is not the right option for your situation. They may suggest pursuing debt consolidation instead. Fortunately, they would be able to help you with that process as well.