Debt, no matter the amount, has the tendency to loom over us. This is because we have been trained to think that debt is bad while at the same time being pressured to have multiple credit cards and to constantly buy. Thus, many individuals seek debt relief each year.
Debt relief through bankruptcy
When bankruptcy is mentioned as a debt relief option, individuals often think this implies that the situation has gotten so bad that this is their only option. While bankruptcy can serve those dealing with overwhelming debt, it is also a viable debt relief path for those struggling to address growing debt due to medical bills, a disabling injury and the inability to work.
At Pope Law Firm, PLLC, our attorneys understand that filing for bankruptcy is an emotional and overwhelming experience. Our law firm is sensitive to this, which is why our experienced attorneys take the time to fully explore your available options and the pros and cons of each one.
Filing for bankruptcy
When it comes to filing for personal bankruptcy, there are two commonly pursued options. The first is a Chapter 7 bankruptcy, which helps a debtor discharge debt while securing essential exempt property. The other is a Chapter 13 bankruptcy, which helps a debtor retain property while establishing a debt repayment plan.
While some individuals can file for either type, some may only file for a Chapter 13. This is often due to their income exceeding the allowances by law. Additionally, the property involved could be non-exempt or subject to foreclosure. In these matters, a Chapter 13 is ideal over a Chapter 7.
Although bankruptcy is often regarded as your last resort, it might be your best option. Thus, it is important to gain a full perspective of your situation, your options for debt relief and how the bankruptcy process could impact you both positively and negatively.
