Filing for bankruptcy often has a negative perspective because society sees it as a personal failure.

The reality of bankruptcy, no matter which chapter you choose, is that you are creating a new opportunity for yourself. Depending upon your situation, bankruptcy may be able to stop collections or stop foreclosure proceedings. It is more than a chance to be free from your debt. It is an opportunity to end your stress.

If you are filing for personal bankruptcy, then your two options are the Chapter 7 process or the Chapter 13 process.

Chapter 7 bankruptcy can eliminate most, if not all, of your unsecured debt. To qualify, you must be able to pass a “means test.” This means your income must be low enough to prove that you are unable to repay at least a portion of your debt.

If you do not qualify for Chapter 7, then you still have the option of a Chapter 13 bankruptcy. Under this bankruptcy chapter, you are creating a new plan to repay part (or all) of your debt over the next 3 to 5 years. During this time, creditors are not allowed to start or continue their collection efforts.

WHEN TO FILE FOR BANKRUPTCY

Most people file for bankruptcy when they have no other financial options left to them. Although bankruptcy should not be your first option when you have debt, it should not be your option of last resort either.

If you or your business is struggling with debt or your repayment negotiations have failed, contact us today. I can help you take your first step towards a chance to be free from your debt.