Bankruptcy doesn’t carry the stigma that it used to years ago. It’s every citizen’s legal right to protection in the United States. Whether by poor choices or poor circumstances, people declare bankruptcy every day. If you find yourself in a position where you may need to declare bankruptcy, there are professionals to help you navigate the difficult waters resulting in a decision that benefits you and provide you with a fresh start.
A Bankruptcy Attorney in Cornelius NC is available to help you decide which path to take should you need to file. For personal bankruptcy, you can file two different ways depending on your situation. One type of bankruptcy is freeing you from paying your creditors and another is a restructuring of your payments to make them more affordable for you.
A chapter 7 bankruptcy will erase all of your unsecured debt such as credit cards, personal loans, medical debts and some types of tax debt. You will be freed of those debts forever. This type of bankruptcy helps because it allows you to take the money which you were paying to those creditors and use it to pay off your secured debt such as your home and/or automobile. A chapter 7 is a liquidation of the assets procedure, but you will be allowed to hold on to much of what you have. Therefore, it’s a good choice for keeping important items such as your home and heirlooms which you don’t want to let go.
A chapter 13 bankruptcy will allow you to keep your assets and will set up a payment schedule to allow you to pay your creditors on a much smaller scale in amounts that don’t cause you any hardship. You will pay those creditors for three to five years and then the debt will be wiped away.
It’s true that a bankruptcy can kill your credit rating. It will remain listed on your credit report for 7-10 years. However, knowing that you cannot declare bankruptcy again for another 7 years or so, makes you a decent credit risk for some companies. For instance, car dealers will send mailers to you about buying a new car, since they are paid off within seven years.
A Bankruptcy Attorney in Cornelius NC will specifically tailor a bankruptcy filing unique to your situation and allow you to get on with your life stress-free. Contact Lake Law Office PLLC for a consultation.
