Should you file for bankruptcy?
Before you decide to file bankruptcy, you must decide whether bankruptcy is, in fact, the best vehicle for dealing with the problems you are facing.
To assess whether bankruptcy will help, take the following steps:
- Learn the advantages and disadvantages of bankruptcy.
- Seek the assistance of a bankruptcy attorney to determine whether bankruptcy will get rid of your debts.
- Bankruptcy may not eliminate all your debts.
- Where are you standing? Do a budget analysis.
- Know that there are alternatives to bankruptcy.
- Find a good bankruptcy lawyer.
Lastly, ask yourself: do the advantages of bankruptcy outweigh the disadvantages? Will bankruptcy have a positive effect on the my life and my family’s life? If the answer to both questions is yes, you should consider seeking the assistance of a good bankruptcy lawyer to help you through the process.
The Pros of filing for bankruptcy:
- Protection of property and income from unsecured creditors.
- Tools for eliminating or modifying secured debts.
- Protection through the Automatic stay.
- Other protections available through bankruptcy.
The Cons of filing for bankruptcy:
- Loss of property.
- Effect on credit and reputation.
- Possible discrimination after bankruptcy.
- Costs involved with filing bankruptcy.
- Failure to solve the debt problem.
Types of Bankruptcy Relief
Chapter 7 (Liquidation):
- Available to individuals and businesses.
- Once case is filed a Trustee is appointed to the case to protect any assets that a debtor may have and ensure a liquidation of the assets for the benefit of creditors.
- If there are assets these may be kept by the debtor by claiming an exemption (ex.: primary house, clothing). If no exemption is available, the assets are liquidated and used to pay creditors. Secured creditors get paid first; unsecured creditors get the rest (if any).
- After distribution or upon a determination that no distribution is available, an individual receives a discharge: a financial fresh start.
- For business, a discharge equals business death.
The Automatic Stay:
Filing a bankruptcy petition automatically stays (stops) most collection actions against the debtor or the debtor’s property. But filing the petition does not stay certain types of actions listed under the Bankruptcy Code, and the stay may be effective only for a short time in some situations.
The stay arises by operation of law and requires no judicial action. As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even telephone calls demanding payments. In essence, it gives the debtors a breathing space to determine which creditors will be paid.
Take a look at our blog here for more information regarding the bankruptcy process.
We provide counseling to help you manage burdensome debt and can help you discharge
them through bankruptcy.
On behalf of Josph Carpenella, Christian has represented me in my bankruptcy case. He is great lawyer and was easy to work with. He led the way and kept me informed on my case from beginning to end. I would recommend Christian to anyone of my family and friends.
He was very co-operative in my case, he became interested in this and in following up. Also when I wrote to Him, He gave me a prompt response to my messages.
Christian has represented me in my bankruptcy case. He is great lawyer and was easy to work with. He led the way and kept me informed on my case from beginning to end. I would recommend Christian to anyone of my family and friends. PLease be sure to reach out to him for your case.
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