Though filing for bankruptcy seems like a scary option, it often turns out to be quite necessary. Often, while falling right in the face of a financial crunch, people might get clueless. All of a sudden, whatever one has earned seems to be dropping like a house of cards. Indeed, it’s gloomy and profoundly depressing.
However, there is always hope at the end of the tunnel, or so says a reputable Toledo bankruptcy lawyer. For those who don’t know, bankruptcy laws have changed over the last few years. Thus, there are benefits for people who file for bankruptcy. If you are one of these individuals considering bankruptcy as an option, here are some points that you have to consider.
Types of Bankruptcy
Many a time, people fail to pay for the mortgage for a couple of months due to unemployment. However, if they recover their lost financial stand and can make their payments, chapter 13 can be their best option. However, people who don’t have their own homes and are trying very hard to pay off their medical bills are the ideal candidate for chapter 7.
To determine what might be the perfect call, one must jot down all the assets owned and try to highlight what they wish to earn from the bankruptcy. It’s important to discuss all the details with a lawyer so that he/she can tell you how each chapter will affect the individual items.
Assets to Consider
As many bankruptcy lawyers will tell you, bankruptcy does not mean giving up everything that one owns. One obviously can keep all the personal properties like household furniture, clothes, and gadgets.
What will be taken over by the bank depends heavily on the state laws, the category of the bankruptcy filed for, and personal finances. Many a time, individuals can retain higher assets like cars and the family home.
Chapter 7 Qualification
Consumers have to show either through their income or through their expenses that they are capable of returning the capital. This applies when the individual falls below the state median.
However, most often, bankruptcy is usually the last option. Thus, filers who require chapter 7 have no issue in qualifying.
Cost of Legal Help
Sometimes firms put up discount offers, so it might be practical to check these out. Additionally, bar associations, many a time, have a list of low-cost firms that take up pro-bono work.
It is advisable not to entertain non-lawyers who promise that they can help with bankruptcy laws. Such a decision can make one lose everything if things go the wrong way.
Bankruptcy Does Not Protect Joint Account Holders
It’s important to know that bankruptcy dissolves one obligation as a creditor. But if someone else is also on the hook, or if one shares a joint account, the second holder will now have to be responsible for their bills and expenses.
Such information can help you make an early and informed decision. Take advice only from the best and make your money count.