How a Bankruptcy Lawyer Can Help You Clean Up a Financial Mess

Financial troubles can take a serious toll on your overall well-being, relationships, and other aspects of your life. Struggling with overwhelming debt can seem like a lost cause, but there are solutions to help you get your finances back on track. Finding the best bankruptcy attorney to evaluate your financial circumstances can help you understand your options and give you peace of mind.

Giving Advice on How to Move Forward

It can be challenging to know if filing bankruptcy is your best option for debt relief. It’s a serious decision that will impact your credit standing for years. Depending on the circumstances, a local bankruptcy lawyer may recommend debt consolidation or negotiating with creditors to repay a portion of your debt instead.

For example, if you have mostly non-dischargeable debts like domestic support obligations, student loans, or certain types of tax debt, filing for bankruptcy may not be appropriate. A skilled attorney will figure out which options may work best to protect your assets and give you a fresh financial start.

Determining Which Type of Bankruptcy to File

If you and your attorney come to the conclusion that filing for bankruptcy is the most effective solution to improve your financial stability, you also need to decide which type of bankruptcy to file. Chapter 7 is a bankruptcy that enables you to wipe out unsecured debts like credit cards and medical bills. However, if you have enough income to repay a portion of your debt, you may not be eligible for Chapter 7.

Chapter 13 allows you to reorganize your debts and pay them back over a period of 3-5 years. It’s usually effective for debtors with non-exempt assets they want to keep, such as real estate facing foreclosure.

While there are federal exemptions that exclude some assets from bankruptcy, each state has its own specific exemptions as well. Having an attorney who is well-versed in both federal and state bankruptcy laws is critical to safeguarding any assets you may own.

Your bankruptcy attorney will assess your finances and discuss your financial goals to help you choose the option that best meets your needs and protects your interests.

Figuring Out What’s Best for Your Business

If you’re a business owner whose company is struggling and you’re ready to call it quits, a business dissolution lawyer may recommend filing Chapter 7 to liquidate your assets and pay off debts. On the other hand, if you want to get your company back into shape and continue doing business, they may recommend filing for Chapter 11 bankruptcy, which is a business reorganization similar to Chapter 13.

Assisting You with Filing for Bankruptcy

It is critical to be meticulous and forthright about what to include in your bankruptcy petition. Your attorney ensures that it is filed without any errors and that all qualified debts are included. If you fail to include debts that could have been discharged or included in your repayment plan, you may still be on the hook for them.

Alleviating Stress and Providing Support

Being in over your head financially is stressful and overwhelming. As soon as your bankruptcy petition is filed, an automatic stay will be put on your debts. This means that creditors must cease collection efforts, including phone calls, letters, foreclosures, repossession, and wage garnishment. This can take a huge weight off your shoulders and allow you to focus on rebuilding a solid financial foundation.

If you’re facing financial difficulties, our experienced and compassionate local bankruptcy attorneys can help.

This blog was originally posted at https://carosella.com/blog/how-a-bankruptcy-lawyer-can-help-you-clean-up-a-financial-mess/