When debt becomes burdensome and you can no longer manage your payments, it might be time to consider bankruptcy. Bankruptcy is a process through which you request formal debt relief through the courts. For many people, it can provide the financial fresh start they need. However, it comes with a set of rules and regulations that can be quite complex and even confusing. Slate Legal Group can help you decide if bankruptcy is right for you and can help you get through the process.
The Basics of Bankruptcy
When you’re bankrupt, you no longer have the money you need to pay your creditors. However, not everyone’s financial situation is the same, so the U.S. Bankruptcy Code offers different types of bankruptcy relief for different situations. Most individuals will qualify for either Chapter 13 bankruptcy or Chapter 7 bankruptcy. Chapter 13, which is also called reorganization, allows filers to keep their assets and reorganize their debts, which will be paid off over the course of the next several years. A Chapter 7 bankruptcy, which is also called liquidation, will require your non-exempt assets to be sold to repay your debts, and remaining debts are then discharged.
How Complicated is Bankruptcy?
Some bankruptcy cases are fairly straightforward while others can be extremely complicated. Some factors that can affect the complexity of your case include:
- The type of bankruptcy you file
- Your assets
- Whether you own a business
- The details of your case
- Whether there is ongoing litigation
Our team at Slate Legal Group will explain your options and potential issues to consider so that you can make the best decisions for your situation.
Is Bankruptcy Right for You?
Bankruptcy can be beneficial for many people who are facing overwhelming debt and is particularly helpful for those who are facing litigation or foreclosure. It’s not just for people who have struggled with debt but can also be for those who have faced medical hardship, divorce, loss or bad investments. Bankruptcy can give you a chance to put the past behind you and start over again with a clean slate. Call Slate Legal Group to learn more or schedule a free case evaluation with our team.