What Bankruptcy Option Is Right for Me?

Which Bankruptcy Option Is Right for You?

If you are not in a good financial situation, you may have come to terms with the fact that filing for bankruptcy is the best option for you. This can be a very freeing step as you move forward with gaining financial freedom and working toward a better and more stable financial future. However, you may be wondering which bankruptcy chapter is right for you. This can be a difficult decision to make and it can ultimately be one of the most important decisions you will make. That is why you want to do this with the help of a lawyer. A lawyer can go over your financial documents and help you come to a decision that works for you and your family that will start you off on the path to getting back in control of your finances. 

How do I know which option to choose? 

Thankfully, it can be easy to narrow down your list to a few options. For example, you likely will not be filing for Chapter 11 bankruptcy unless you are a corporation and you probably will not be filing for Chapter 12 bankruptcy unless you are a farmer or a fisherman. Typically, the average person will be looking at Chapters 7 and 13. When you work with a lawyer, they can help you determine which option you will be most suited for. 

How will my financial situation impact the type I file for? 

Your current financial situation will greatly impact which type of bankruptcy you file for. For example, if you have a steady income, your lawyer may recommend that you file for Chapter 13 bankruptcy because you will be better suited for a repayment plan. This can be a great situation when you would rather not have to liquidate your property. On the other hand, if you are not a high-income earner and have no idea how you are going to repay your debts, then your lawyer may suggest Chapter 7 bankruptcy. This means that you will likely be facing some nonexempt property liquidation in order to repay your debts, but it also means that most of your unsecured debts will likely be discharged. 

Filing for bankruptcy can be a challenge, which is why it is best to work with a lawyer to ensure you get all of the paperwork done correctly. If you have any questions about how to file, set up an appointment with your local lawyer now.