When Bankruptcy Is Your Only Option

April 15, 2012 by  Filed under: Bankruptcy 

You have probably tried everything to avoid it. Perhaps you have consulted with your bank and other lenders, borrowed money from friends and relatives, and sold or pawned anything of value. If you find your debts are not completely relieved and you have no other source of money to help, bankruptcy could be the last option left for you to take. It is not uncommon to equate filing for bankruptcy with a personal failure, but know it can represent a renewal stage in your life, one that helps you regain financial footing and work toward paying what you owe.

Those in debt who are not able to come to terms with creditors with regards to a payment schedule have considered bankruptcy as a way to assist these financial problems. While bankruptcy doesn’t totally forgive your debts, the amount you may end up paying would be reasonable given your situation.

Once you’ve accepted filing is the best thing to do to help you out of this financial hole, you’ll want to take a deep breath. Bankruptcy may seem like a frightening process, but if you have all the pertinent information needed to file the paperwork you may be able to complete the process quickly. The assistance of a lawyer who concentrates in bankruptcy law can guide you through the steps necessary so that your case is approved.

Your lawyer will inform you whether Chapter 7 or Chapter 13, the most common types of personal bankruptcy, is the best course of action for you. Chapter 7 requires that you give up property that is not exempt in order to satisfy your debts. If you do not own a home but have other assets, this could be a viable option for you. Chapter 13, on the other hand, lets you keep these assets. If you are a homeowner, you may wish to ask your lawyer about this process so you will not have to leave your home.

It is important to know, too, that once your case is approved it will remain on your financial records for about a decade. You can discuss ways to rebuild your credit with your lawyer so that as you work through this time you can become more confident in financial decisions. Obtaining a new credit card, for example, may not be as simple as in the past, but you should know by now how to wisely use one.

When bankruptcy is your only option, seek help if you need it. You don’t have to go through the procedure alone. There is help.

Kathryn Lively is a freelance writer specializing in articles on Virginia bankruptcy lawyers and Norfolk personal bankruptcy attorneys.

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