Filing for bankruptcy may be the last thing you want to do, but if you are unable to pay your bills in a timely manner or not at all, it may be your last recourse. Due to the economy, many responsible homeowners are in the same financial bind. Contacting an Arlington bankruptcy attorney is a simple way to learn everything you need to know about Chapter 13 bankruptcy. The Law Offices of David Kohm will explain the different aspects so that you can fully understand the ramifications.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a form of personal bankruptcy that allows a debtor to go through what is called “financial reorganization,” in which a debtor’s debts are restructured by a court. Unlike Chapter 7 bankruptcy, it does not wipe a debtor’s debts clean; Chapter 13 instead allows them to repay their debts over time, as determined by their court settlement.
Myths About Chapter 13 Bankruptcy
Many people are under the mistaken impression that filing for Chapter 13 bankruptcy means you will lose your home. This is not typically the case; in fact, most of the time, homeowners can keep their cars, household and personal belongings, and their homes.
Clients also fear that their employers, friends, and neighbors will find out about their bankruptcy. While this is a valid concern, talking to an attorney will help assuage these fears and will show you the truth about bankruptcy.
What to Do Before Declaring
There are a few steps you should take before contacting a law firm and deciding to declare bankruptcy:
- Look at your bills and your income to obtain the complete picture of your financial situation.
- If you determine that filing bankruptcy is your only option, contact an Arlington bankruptcy attorney.
- Gather all your bills together and bring them with you to your consultation. This will assist your attorney and his or her staff in documenting your financial picture.
- Set aside your shame or mortification at having to file bankruptcy. Good, hardworking citizens all around the United States are in the same predicament.
Filing Chapter 13 bankruptcy is an effective way to relieve the stress resulting from excessive bills and persistent bill collectors.
Contact Our Offices Today
Filing for bankruptcy isn’t the end—it’s a chance for a fresh start without the hassle of tenacious bill collectors calling you day and night.
If you’re facing financial hardship and would like to discuss your options for filing bankruptcy, call the Law Offices of David Kohm at 817-204-0900.