Bankruptcy is not always a bad thing
Society as a whole has a negative view of bankruptcy. People seem to think it is the same thing as failure, or indicative of financial irresponsibility. However, this is not the case. Bankruptcy is a valid and intelligent financial move for those who are saddled with debt. Many people have declared bankruptcy in their path to success:
Walt Disney
Burt Reynolds
David Bowie
Ulysses S. Grant
Henry Ford
Nicholas Cage
Abraham Lincoln.
Declaring bankruptcy may be your first step to financial success. Do not let your debts continue to weigh you down. Achieve financial freedom and file for bankruptcy.
What bankruptcy looks like
The purpose of bankruptcy is to clear as much debt from your name as possible. Many debts, such as credit card or medical debt, can be discharged in this way, meaning you will not have to pay them back in the future. This usually results in a hit to your credit score, but with the benefit of being able to retain much of your property and your home. Bankruptcy may require selling some of your possessions. However, unlike most repossessions, this is a civil and negotiated process. Certain possessions may be exempt, such as your house, furniture, car, or work tools. Bankruptcy is not merely selling all of your possessions- it is a thoughtful and mediated process. One where we work to ensure you are able to continue your life with a fresh start.
For individuals, there are two types of bankruptcy: Chapter 7 and Chapter 13. We will carefully analyze your situation and suggest which option is best for your individual situation. Both offer the potential of discharging almost all of your debt. Each has its own requirements, advantages, and disadvantages we are happy to walk you through.
Chapter 7
Chapter 7 is what most people are thinking about when discussing bankruptcy. Certain non-exempt assets may be sold to pay towards your creditors, with certain assets being exempt, like your home, car, or work-related tools. Once the assets are sold, the remaining non-exempt debt is discharged. This is the best method to quickly get a fresh start and avoid repaying debts you may have incurred. The bankruptcy will remain on your credit report for 10 years, but you will not have to worry about the discharged debts otherwise.
Chapter 13
Chapter 13 is closer to organizing a payment plan rather than what most people think of when discussing bankruptcy. Typically we will negotiate a repayment plan with the court, in which you agree to repay some or all of your debt, often with your debt being reduced. At the end of the repayment plan, all nonexempt debts will be discharged. So long as you follow the payment plan, you should be able to retain most, if not all, of your assets. Chapter 13 usually has less of an impact on your credit score, remaining on your credit report for only 7 years.
Get in touch.
Do you have any questions? Feel free to leave your email or phone number and we’ll be sure to get in contact with you so we can help you figure out what your next move might be.