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What Happens if I Declare Bankruptcy?

What Happens if I Declare Bankruptcy?
/24 Sep 2022
/By admin

Bankruptcy Lawyer

Declaring bankruptcy may be the only way out from under your crushing debt, but there’s more too it than immediate financial relief. As a Bankruptcy Lawyer in East Hartford CT like our friends at the Law Offices of Neil Crane can explain, bankruptcy is a serious decision, and you need to make sure you know what you’re getting into before you decide it’s right for you.

Read on to learn more about the pros and cons of filing for bankruptcy, and see why it’s so important to have a qualified and experienced bankruptcy lawyer on your side.

What Do I Get out of Declaring Bankruptcy?

If you’ve built up considerable debt, or your many financial obligations are just bleeding you dry, you can file for bankruptcy to give yourself a clean slate. You’ll be able to satisfy your creditors and get out from under your debts, and you’ll be able to get rid of all those assets that are costing you money. It’s a breath of fresh air, but it comes at a price.

What Are the Cons?

The negatives of bankruptcy really depend on the type of bankruptcy you file. If you file Chapter 13 bankruptcy, you’ll have to come up with a payment plan that satisfies your creditors, and you’ll have to stick to the plan until they’re all paid off and satisfied. It can be a pain to set aside money and tighten your finances for the several years it might require to pay off your debts, but many people accept it’s a better alternative to Chapter 7 bankruptcy.

What is Chapter 7 Bankruptcy?

When you file Chapter 7 bankruptcy, you’re pulling out all the stops to pay off your debts. This means selling off your assets to get the necessary money to climb yourself out of debt. “Assets” can mean anything from properties, investments, cars, collections, and even family heirlooms. You’ll have to sell off practically everything for financial freedom, but some people think it’s completely worth it – especially if you can protect some of your assets from liquidation.

Can I Protect My Assets?

If an asset is protected, it means it’s exempt from liquidation when you file Chapter 7 bankruptcy. Certain states have their own ideas about protected assets. Protected assets can include your wedding rings, your primary residences, and cars under a certain value. You may also be able to hold on to your tools or work-related equipment, as well as the appliances in your home. A skilled bankruptcy lawyer will be able to tell you more about protected assets – and more.

Why Do I Need a Bankruptcy Lawyer?

Bankruptcy is never easy. It can be a long and painful process, and without proper legal guidance, you may find yourself even more lost than before. Fortunately, the right bankruptcy lawyer can help you better understand your options, and better understand how to proceed when you decide what chapter of bankruptcy works best for you.

Don’t hesitate to get the legal help you need before, during, and after your bankruptcy. Get in touch with a bankruptcy lawyer today.