Bankruptcy is a serious process that is generally entered into by those individuals who are facing crushing debt. With no other recourse in sight, most people who choose bankruptcy do so in order to get their finances back in order even though they’ll have to go through a laborious process in the short-term. Though the average person who is dealing with the potential of going through bankruptcy probably has bills piling up, that’s not necessarily true for everyone who contacts a bankruptcy attorney. It’s important, then, to determine whether or not you can file for bankruptcy under current bankruptcy laws even if you are keeping up with your current obligations.
When most people think of filing bankruptcy, they’re specifically thinking about filing Chapter 7. This is the type of process that eliminates the vast majority of your debts, but it is also the process that requires you to work with a bankruptcy trustee in order to satisfy at least some of what you owe through the sale of some of your assets. This type of bankruptcy can only be filed by those who are currently behind on their payments.
There is, however, a type of bankruptcy that you can file even if you are current on your payments. This is Chapter 13 bankruptcy and it is typically filed by those who might be on top of their bills right now but who know that they will be facing a major financial downsizing in the future. Unlike Chapter 7, this section of the bankruptcy law doesn’t eliminate your debts outright. Instead, it requires those filing to enter into a payment plan with their debtors to pay off a certain amount of their debt over a set period of time. This type of bankruptcy is ideal for those who can make at least some payments and who don’t want to have to deal with selling off their property.
While you cannot file Chapter 7 bankruptcy if you are current on your bills, you can file Chapter 13 bankruptcy. You’ll need to speak with a bankruptcy attorney to decide which form of protection is best for you and you’ll certainly want to examine all of the pros and cons of both types of bankruptcy before you make a decision. If you are ready to consider bankruptcy or any other kind of legal action to protect your future, make sure that you contact Fair Free Legal Services today.
Fair Fee Legal Services
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