4 Things A Bankruptcy Law Firm Will Evaluate Before Telling You Which Bankruptcy Option To File Under
Filing for bankruptcy can be difficult, especially if you don't know which option is best for your situation. If you choose the wrong option, you could be left in more debt than before. This is why it's important to get professional advice from a bankruptcy law firm. A lawyer will evaluate various factors before telling you which bankruptcy options suits you. Here are four of them:
Your Financial Goals
Before selecting a bankruptcy option to file under, you need to have financial goals. An experienced attorney will examine your current finances, future plans, and any other pertinent information regarding your financial situation. They'll also review credit reports from major bureaus and check any recent changes to your income or debt levels. This information will help them recommend the best way to achieve debt relief.
The Types of Debts You Owe
The types of debts you owe will influence the bankruptcy option you select. Before telling you the option to file under, a lawyer will analyze all of your debts, including credit card debt, medical bills, personal loans, and other unsecured obligations. Depending on their nature, some may be dischargeable through Chapter 7, while others may require repayment plans under Chapter 13.
The Assets You Own
Your assets are a major factor when deciding which bankruptcy option to file under. A bankruptcy attorney will evaluate all of the assets that you currently own, including your home, cars, boats, retirement accounts, and any other property that is of value. All the assets you own should be included in your bankruptcy filing and may be subject to liquidation. This way, it will be easy to compare them to the debt you own and determine how many assets can be used to pay your creditors. Some bankruptcy options may also provide exemptions that protect certain assets from liquidation. A lawyer will help you understand which assets are protected so that you can make the right decisions.
Income
The amount of money you earn can help a bankruptcy attorney tell you the option to file under. To determine if you qualify for chapter 7, they'll determine if your income is below the median for your state of residence. If your income exceeds the median, they may advise you to file for chapter 13.
When determining which type of bankruptcy option is best for you, working with a knowledgeable and experienced bankruptcy attorney is essential. These legal professionals will evaluate your financial situation and determine which option suits you. They will help you make an informed decision by considering your financial goals, the types of debts owed, the assets you own, and your income and expenses.
Contact a local bankruptcy law firm to learn more.
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