Does it feel like everything is crashing down on you?
- Are you only able to afford minimum payments on your credit cards?
- Are bill collectors harassing you?
- Does the thought of sorting out your finances scare you?
- Are you using credit cards to pay for necessities?
- Are you unsure how much you actually owe?
If you are facing serious financial problems, bankruptcy could be an option to seriously consider. You can stop the constant collection calls. You maybe able to completely erase some of that debt. You can start to create a financial clean slate.
Bankruptcy along a solid financial plan afterwards will ensure that you don’t end up in the same situation again in the future.
Debt is a personal struggle that is different for everyone.
The path out is not always clear nor easy.
There are a few alternatives when it comes to recovering from debt:
Chapter 7 is the most common type of bankruptcy. It is also referred to as “straight bankruptcy” or liquidation bankruptcy. Chapter 7 relieves debt by gathering your resources and assets and selling them, leaving you enough to stay afloat and begin moving forward. In order to qualify for Chapter 7 you have to pass a Means Test. The Means test compares your income level to your level of debt. The test factors in Salary, Unemployment Compensations, Annuity payments and more.
Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor’s business affairs, debts and assets. Named after the U.S. bankruptcy code 11, Chapter 11 is generally filed by corporations that require time to restructure their debts, and it gives the debtor a fresh start, subject to the debtor’s fulfillment of his obligations under the plan of reorganization.
Chapter 13 is an option for those who cannot pass their Means Test due to their income levels. It allows you, together with your lawyer, to set up a payment plan to gradually pay off debt. This allows you to get caught up on missed payments, pay off student loans, and keep property that would not be exempt in Chapter 7 Bankruptcy.