‘Should I file for bankruptcy?’ this question seems to hover in most individual minds
experiencing major financial crisis. In general bankruptcy isn’t the first
thing to consider. But, severe financial obligations, heavy debts, unemployment
may glide one’s mind towards considering filing
bankruptcy.
But it’s important that you study all your options before you
opt to file for bankruptcy. If all
the other resources and avenues have exhausted leaving filing bankruptcy as the
only outlet, then just go for it without being embarrassed about it.
Bankruptcy gives you a chance to end the financial mess, turn
your life around and begin building it up again newly. Bankruptcy also stops
foreclosure, puts an automatic stay on further collection of debts and gives
relief from the burden of overwhelming debts.
Personal/Individual Bankruptcy can be classified as Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 or also called straight
bankruptcy is concerned to liquidation where the insolvents assets and
resources are liquidated and the debtor is relieved from further liabilities.
On the other hand, Chapter 13 also known as wage earner/re-organization
bankruptcy deals with restructuring the debts and providing various adjustments
to clear your debts over a period of time.
But you should always seek advice from an expert bankruptcy
attorney before filing for bankruptcy. This way you come to know if you have
other alternatives or if you are eligible to file for bankruptcy. Bankruptcy
attorneys, being legal experts at bankruptcy law, advise and guide you
appropriately.
In brief, Bankruptcy filing for any individual ought
to be a great alternative to discharge current financial situation and start
fresh.
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