Living within your means is a goal that many people strive for. They try to keep their debt at a reasonable level, pay bills in a timely manner, and plan for any large purchases. Unfortunately, this is not always possible, often due to circumstances entirely outside of your control. Unexpected events, including the loss of a main source of income or major medical expenses, can lead to insurmountable debt.
It can be stressful and overwhelming when you are facing a large amount of debt that seems impossible to pay off. You want to maintain a good life for yourself and your loved ones, but that seems impossible with major debt. If you find yourself facing debt that you are unable to pay off, it may be advisable to file for bankruptcy. This will give you the opportunity to minimize or eliminate some or all of your debt or create a plan to pay it off efficiently. It can also provide an avenue for renewed financial stability for you and your family. It can be difficult to understand the bankruptcy filing process. Fortunately, the experienced team at Steele Law Firm, PLLC, can help guide you.
Financial challenges and stressors are an expected part of most people’s lives. Unexpectedly losing a job or facing a medical crisis can happen to anyone and incur major debt. Filing for bankruptcy may help if you have faced these or similar challenges and cannot repay these debts on your own.
Bankruptcy laws were created at the federal level. They help protect businesses and individuals who find themselves with more debt than they can reasonably pay. They provide a way for those who have been overtaken by debt to pay back as much of it as possible. The court will determine a reasonable timeframe. Once the debt is paid off, the filer can begin to rebuild their financial stability. Liquidating assets or creating a payment plan are two of the most common options available to individuals who file for bankruptcy. Both are good options, but they each serve a different purpose.
The laws regarding bankruptcy are extensive and account for a wide variety of circumstances. There are many different areas of the bankruptcy code, each one called a chapter. Individuals and businesses in various circumstances can file for bankruptcy using a different chapter, depending on their needs. There are six chapters in bankruptcy.
Most individuals who need to file for bankruptcy will either file Chapter 7 or Chapter 13. If bankruptcy is the most accessible or helpful choice for you and your loved ones, you should understand which chapter meets your needs. Chapter 7 and Chapter 13 have specific criteria that must be met.
This chapter of bankruptcy is one of the most common for individuals. It is the process of liquidating assets to ensure that debts can be paid. One requirement of filing for Chapter 7 bankruptcy is to submit a full list of your assets. A court representative can then determine what assets can be liquidated.
Filing for Chapter 7 bankruptcy can:
While liquidation works well for some, it may not for others.
If you file for Chapter 13 bankruptcy, then you likely have a source of income, potentially including social security or disability. This will allow you to make regular payments on your debt. Filing for this chapter allows you to create a payment plan that typically spans three to five years. You will be required to pay back your remaining debts within that timeframe.
This will have no impact on debts you gain after you have filed and cannot stop any criminal proceedings connected with your debt. It does, however, provide protection from creditors and time to get your finances in order. Regardless of the bankruptcy chapter you file under, working with an accomplished Eagle Mountain bankruptcy attorney can make the process easier. They can help ensure you get the relief you need.
The process of starting a bankruptcy filing can be tedious and take a great deal of time. All of the necessary paperwork must be completed, and all of the proper documents must be provided. It is also essential that each step be completed properly to avoid any delays or missteps. An accomplished Eagle Mountain bankruptcy attorney can guide you through the bankruptcy process, but you should also be as informed as possible.
There are a few steps that must happen in any bankruptcy filing, regardless of the chapter. If you are filing for Chapter 7 or Chapter 13 bankruptcy, you will complete the following steps:
If you are filing for Chapter 7 bankruptcy, you will only have to complete one more step to complete the process. You must attend a financial management course and submit your certificate to the courts for approval. Individuals who are filing Chapter 13 bankruptcy, however, must complete a few more steps to finish the process:
The process of initiating and completing a bankruptcy filing can be time-consuming and emotional. Nevertheless, it is often worth the stress for those seeking renewed financial freedom.
Working within the legal system can be overwhelming or confusing, particularly if you have no experience with it. This difficulty can worsen when filing for bankruptcy because it is often such an emotional decision and process. It is essential to have the proper support, as it can ensure that you receive the financial relief you need. There are several ways that an Eagle Mountain bankruptcy attorney can assist you through the bankruptcy filing process.
Choosing to file for bankruptcy is not always easy. In fact, the choice can be mentally, emotionally, and financially difficult even when it is the right decision for your future. Understanding the process can also be difficult because it takes a great deal of time and requires specific resources. Being as informed and prepared as possible can be invaluable during the bankruptcy process.
An accomplished Eagle Mountain bankruptcy attorney can help you navigate the process and make it more manageable. The resources, guidance, and support they can provide can give you peace of mind. An experienced insolvency lawyer can give you confidence as you complete the whole filing and bankruptcy process. You can move toward financial stability with confidence and hope following your bankruptcy filing. Trust the team at Steele Law Firm, PLLC, when you make the important decision to file for bankruptcy.