Bankruptcy: even the mention of it is enough to send a chill down many people’s spines. Does bankruptcy mean instant financial doom? Absolutely not. Let’s fist understand the bankruptcy law definition.
Bankruptcy is a legal process undertaken by a person or business once they’re unable to pay their debts. In this case, the debts are reorganized or even discharged entirely by the courts.
Bankruptcy proceedings fall in 3 main categories:
1.Chapter 7 that handles individual petitions
2.Chapter 11 which involves business reorganization
3.Chapter 13 which deals with wage earners
If you fall in this 3rd category, you can hire a chapter 13 bankruptcy lawyer who will help you structure a repayment plan in tandem with your income. As a debtor in bankruptcy case, you’ll be seeking to have the court grant you more time to repay your debts.
Can you file bankruptcy on Sallie Mae loans? It is not unheard of to file bankruptcy on student loans, but the legal process is more burdensome than others.
Another concern on the matters of bankruptcy is the privacy of the matter, since anyone can check bankruptcy filings online. Many people believe that filing for bankruptcy will put your financial details out there for all to see, which is fortunately not the case. Below we debunk more myths surrounding bankruptcy.
Bankruptcy, as common as it is these days, is still one of the more taboo topics among Americans — which seems pretty ridiculous, considering that about one in every 70 American households file for bankruptcy, and thousands of Americans file for bankruptcy each year. Here are just a few of the more common myths — and the real truths behind them — that are still floating around:
Filing for bankruptcy is just an easy way out. Between the fees involved in a bankruptcy filing, and the stress with finding a bankruptcy lawyer, and then the hassles of planning your financial future for years to come, bankruptcy definitely isn’t an “easy way out.” In fact, many people find that they don’t have enough money to pay the fees of lawyers for bankruptcy cases.
Bankruptcy is something you should be ashamed about. Considering the fragile state of the U.S. economy in the past decade, having some money problems definitely isn’t something to be embarrassed about. When you find a bankruptcy lawyer who honestly wants to help you and wants to give you the best financial future possible, it might become clear that an alternative to bankruptcy is a better solution. On the other hand, if you find that you just need a fresh start, bankruptcy might be the best option. There’s nothing wrong with doing what’s best for you.
The consequences of bankruptcy will haunt you forever. Will your credit score be hurting for a while? Yes. Will you feel a bit stressed out with all the paperwork, fees, and meetings? Yep. Will you have to reassess your spending habits and learn some better budgeting? Probably. But if you’re able to find a bankruptcy lawyer and a financial adviser who help you get started, you’ll find that it gets easier to manage your finances responsibly.
If you’re having financial troubles, the most important thing to remember is that you should take your time when deciding to file for bankruptcy and when choosing a lawyer or law firm. There are plenty of online guides that will teach you how to find a reputable lawyer, and give you lists of questions to ask a lawyer before definitely deciding to file for bankruptcy.
Bankruptcy seems like an intimidating process at first, but with patience and perseverance, it might just help you turn your life around. More info like this.