Are you trying to figure out how to get out of debt? If so, checking into bankruptcy might be a good idea. Bankruptcy might not be the best option for everyone, but it is an excellent debt-relief method for some. If you are not sure if it is right for you, here are some steps you can take to find the answer.
One place you can start is by researching bankruptcy. When you explore this subject, you will likely discover that you have options. Bankruptcy comes in two main types — Chapter 7 and Chapter 13. As you compare these types, you will see some major differences. Here are some of the differences:
- Timing — It takes less time to use Chapter 7 than Chapter 13.
- The way each handles debt — You will also see that Chapter 7 eliminates a debt, while Chapter 13 requires repayment.
- Situations — You might also learn that some financial situations benefit more from Chapter 7, while others benefit more from Chapter 13.
Understanding the basic principles of each chapter can help you know which type to pursue and the differences between the branches.
Visit a Bankruptcy Lawyer
The next thing you must do is visit a bankruptcy lawyer. A lawyer offers legal advice, and a bankruptcy attorney can help you learn two main things. First, the lawyer will assess your situation to determine which branch you qualify for based on your income. Next, the attorney will determine which branch will offer the most help for your situation. You can ask questions during this visit, and you can try to learn as much as possible about your options.
To determine which branch to recommend, your lawyer will examine your income. Your income might qualify you for Chapter 13 only or both branches. Next, the attorney looks at your debts. Knowing the types of debts you have helps a lawyer offer advice about which branch to use.
Consider the Pros and Cons
After learning these things, you might want to compare the pros and cons of using bankruptcy before filing. Comparing the pros and cons will help you decide if you should file. You can reap many benefits through bankruptcy if you use the right branch. You might also face consequences when filing. Understanding both the pros and cons can help you make the right decision.
If you have questions or need advice about your situation, contact a bankruptcy lawyer today.