When people are faced with insurmountable debt, they may consider bankruptcy as an option to help them get a fresh start.
Bankruptcy is a legal process that can provide relief from overwhelming debt and enable people to get a new beginning. There are different types of bankruptcy, and each one has its own benefits and drawbacks.
In order to decide if bankruptcy is the right choice for you, it is important to understand what it is and how it works.
Bankruptcy is a legal process that can provide relief from debt for individuals, families, and businesses. The main purpose of bankruptcy is to give people a fresh start by discharging their debts.
When you file for bankruptcy, an automatic stay goes into effect. This means that your creditors are no longer allowed to contact you or take any action to collect the debt.
The automatic stay is a temporary protection that can give you some breathing room to get your finances in order.
There are two main types of bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 bankruptcy is also known as liquidation bankruptcy. This type of bankruptcy can help you discharge your unsecured debts, such as credit card debt and medical bills.
Chapter 7 bankruptcy can also help you keep certain assets, such as your home and your car. In order to qualify for Chapter 7 bankruptcy, you must pass a means test. This test is used to determine if your income is low enough to qualify for this type of bankruptcy.
Chapter 13 bankruptcy is also known as reorganization bankruptcy. This type of bankruptcy can help you repay your debts over time. With Chapter 13 bankruptcy, you will be required to create a repayment plan that will last for three to five years.
After you have completed your repayment plan, any remaining debts will be discharged. In order to qualify for Chapter 13 bankruptcy, you must have a regular source of income.
Bankruptcy can provide relief from debt and give you a fresh start. However, it is important to understand that bankruptcy will have a negative impact on your credit report. Bankruptcy will stay on your credit report for seven to ten years.
During this time, it will be difficult to get new lines of credit. Additionally, your interest rates will likely be higher.
If you are considering bankruptcy, it is important to speak with an experienced bankruptcy attorney. An attorney can help you understand the process and determine if bankruptcy is right for you.
If you are in the stressful situation of having to file for bankruptcy, remember that there are advantages. At Blue Bee Bankruptcy, our goal is to help people rebuild their lives after filing for bankruptcy.
Our attorneys are knowledgeable in chapter 7, chapter 11, and chapter 13. We can help you make the right filing decision for your unique case.
If you’re dealing with the potential of bankruptcy, give us a call. Our team will work to help you by reviewing all of the options our firm has available. We will ensure you’ll get the best possible outcome for your situation.
Get in touch today so we can start working on either halting bankruptcies or preventing them from taking place altogether!
Contact Us Today For Help! You can schedule your free consultation online or call us at (801) 285-098.
