If you’re trying your best to pay off debt, but not making much progress because you lost your job or your business is doing poorly, you might be wondering if you should consider filing for bankruptcy. You probably know that bankruptcy can be helpful in eliminating or reducing debt, but you’re concerned about the impact on your credit or whether you can keep your home and vehicle. The best way to find out if bankruptcy is the right step for you, is to speak to an experienced Baton Rouge bankruptcy attorney about your particular financial situation.
Is Chapter 7 or Chapter 13 Bankruptcy Right For You?
If you have very little income and few assets, Chapter 7 bankruptcy might be able to help you wipe out your debts, giving you a fresh start financially. If you qualify, all of your unsecured debts such as medical bills, credit cards and personal loans can be eliminated. It’s important to be aware that some debts such as child support, alimony, student loans and taxes cannot be discharged under Chapter 7. Your non-exempt property will be subject to sale to pay creditors, but your home, vehicles and other “necessities of modern life” are usually considered exempt, so you can keep them. If your income and assets are substantial, but you’re financially overextended, Chapter 13 can help you reorganize your debt into a payment plan that you can afford. You are usually able to keep all of your assets as long as you keep up with the payment plan that’s been established. Bankruptcy laws and qualification standards are frequently changing, so it’s important to consult with an experienced Baton Rouge bankruptcy attorney to determine what type of personal bankruptcy would be most suitable for you.
How A Baton Rouge Bankruptcy Attorney Can Help You
A Baton Rouge bankruptcy attorney can help you determine whether filing for bankruptcy is the right move for you at this time. At your initial consultation you’ll learn whether you are likely to qualify for Chapter 7 or whether Chapter 13 might be a better choice. If you’re drowning in debt, it’s important to get the information you need to improve your financial situation.