Your lifelong financial status is a choose your own adventure book, where everyone starts out on the same page but ends up with a completely different ending based on their decisions throughout. Some people’s story might end with early retirement and others might be paying off their student loans while their grandchildren are in college. Then, there are those who get to the last page of their story it reads “Bankruptcy” in big, bold letters at the top of the page. That’s it, the rest of the page is empty.
Anyone can find themselves filing for bankruptcy at some point in their lives, sometimes more than once. It doesn’t mean it’s the end of the world and it certainly doesn’t mean you can’t finish your story on top. Here are some facts about filing for bankruptcy that can help you figure out a new path.
There’s more than one type of bankruptcy
Before jumping head first into the shallow end of the bankruptcy pool, you may want to explore your options. There is more than one type of bankruptcy you can file, depending on your status (personal bankruptcy, business bankruptcy, etc.) and personal preferences.
For instance, the two most common types of bankruptcy that you can file for are Chapter Seven and Chapter 13. Chapter Seven is like going back to page one of your adventure book – your slate gets wiped clean. Most, if not all, of your assets will be liquidated to pay off as much of your debts as possible and then the slate is wiped clean. Chapter 13 bankruptcy is similar to loan repayment, where the debtor (you) pay back your debts over the course of three to five years, typically. If you’re interested in finding out more about these or other types of bankruptcy, contact us today to schedule a consultation.
Filing for Bankruptcy isn’t always the right option
While some people might be able to restart their adventure after filing for bankruptcy, others might only be able to go back a few chapters. Filing for bankruptcy isn’t always a sure thing and you can still be left with debts afterwards. It’s important to explore all of your options when it comes to filing bankruptcy, not just what type to choose. You may find that there is an alternative option that better suits your personal situation. A lawyer can help determine if filing for bankruptcy is the right course of action for you to take.
Bankruptcy is a stain that won’t go away that easily
What many people tend to forget, or maybe they just didn’t know, is that filing for bankruptcy is a stain on your financial record that sometimes doesn’t go away for a decade or more. For starters, your credit takes a big hit and you can find yourself hard-pressed to get approved for a credit card. Moreover, you’ll have to notify any future employers of your bankruptcy status, as well as list it on a number of documents that you wouldn’t have guessed. In other words, filing for bankruptcy isn’t a decision that should be taken lightly, because it tends to hang around for a while.
If you’re on the last page of your adventure story and you see those big, bold letters at the top of your page, give a law firm a call. An attorney will help you find the best solution for your specific case and get you back to a better financial position.