If you are in need of debt relief, you may have been thinking about filing for bankruptcy. While this can be a great choice for you, it is important that you seek guidance through this process. Having an experienced Dayton bankruptcy attorney assist in your case can provide you with a source of counsel and be there to ensure your case is managed as successfully as possible. Before you file your petition, be sure to ask your attorney a few important questions.
Which type of bankruptcy is best for me? There are two types of personal bankruptcy, and it is important to review the risks and benefits of both in regards to your financial situation. Chapter 7 bankruptcy has strict eligibility requirements that you may find disqualify you from filing, needing to seek Chapter 13 instead. Your debt types could also influence which type of bankruptcy is best to resolve your financial situation, and you could find that some of your debts are not eligible for bankruptcy protection under either Chapter. Your attorney will review your income, debts, asset status and inquire about your financial goals in order to help you determine which type of bankruptcy will best meet your needs.
Are there any risks to my assets? There is a common fear among debtors that filing for bankruptcy will leave you with nothing. This is a myth and most people keep all of their property in their case. While there are some instances in which the court may grant asset liquidation to satisfy a debt, bankruptcy exemption laws offer a wide range of protection for all of your essential assets. How assets are handled in bankruptcy is a sensitive issue. Your attorney knows how to minimize the threat to your assets and help you keep possession of your property.
Is my financial situation in position to file for bankruptcy? Not only can your financial situation determine whether you are eligible for a particular type of bankruptcy filing, it can also determine whether you are eligible to file at all. Unusual spending habits, major payments to creditors, or fluctuations in income prior to filing your case could jeopardize your ability to obtain a debt discharge. Your attorney will review your recent financial history to determine if your habits in the months leading up to bankruptcy are sufficient enough to warrant a successful case outcome.