When you are ready to gain control of your finances and relieve yourself of overwhelming debt, it may be time to consider bankruptcy.
While it may be hard to determine which bankruptcy to choose, there are several Chapters in the bankruptcy code, some for individuals, some for businesses and farmers. A qualified bankruptcy attorney will be able to discuss your situation with you and help you pick a route that bests fits your needs.
The two chapters of the bankruptcy code that is applicable for most people are Chapter 7 or Chapter 13 bankruptcy.
Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy.” Your assets are sold, and the remaining profit is paid to creditors to satisfy your debts. Chapter 13 bankruptcy, or “reorganization bankruptcy” on the other hand, is a way to keep your assets and get on an approved payment plan giving you time to catch up while still satisfying your creditors over time.
Determining What to File
If you would like to keep most of your assets and have a job, Chapter 13 may be the way to go. This type of bankruptcy can take several years, but when you come out of it, you will have a fresh start. If you would like to get the bankruptcy process over quickly, Chapter 7 will sell your assets and pay your creditors usually within six months.
Other determining factors that you would want to discuss with a bankruptcy attorney is, how far behind you are in your payments, your income, or if you owe back taxes to name just a few.
Get a Lawyer to Represent you in Court
After reading these articles and searching online, you should not assume you have enough knowledge to go it alone in a bankruptcy case. Each situation is different, and a qualified attorney will help you choose the best course of action.
Contacting a Cincinnati bankruptcy lawyer and discussing your options is the smart way to go. Representing yourself may not save you money in the long run if you choose the wrong bankruptcy code to file, miss a deadline or fail to file a motion, you could lose way more then the fees associated with hiring a qualified lawyer.