How Bankruptcy Can Help Through Difficult Times

Most Americans are just a few paychecks away from financial disaster. The loss of a job, divorce or a medical crisis can escalate debt until it becomes close to impossible to pay it down. This can happen at any time, causing overwhelming stress and extreme frustration. In such situations, filing for bankruptcy might be the right solution. If you’re considering bankruptcy, it’s important to speak to an experienced bankruptcy lawyer that can help you decide what type of bankruptcy is best for your situation.

Bankruptcy and Staying in Your Home

Whether you rent or own your home, filing for bankruptcy can help you stay in your home longer. The automatic stay that goes into effect when you file for bankruptcy will buy you time in your home, giving you a better shot at avoiding eviction or foreclosure. You can sometimes qualify for Chapter 7 and keep your home. This is possible if you’re not too far behind on your payments and don’t have much equity in the property. If you have substantial income and assets, developing an affordable payment plan with Chapter 13 could help you prevent eviction or foreclosure. Even if you can’t permanently stay in your home, you’ll at least have more time to find a more affordable place to live.

What Assets Can I Keep With Bankruptcy?

Chapter 7 bankruptcy is means tested, so you cannot qualify if you have substantial assets, but you are allowed to keep some exempt assets. You can keep a small amount of equity in your home and car, plus many of your household possessions and things you need for your job. If you have substantial income and assets, but you’re having trouble with mounting debt, Chapter 13 can help you develop a payment plan that could help you keep all of your assets.

The best way to find out if bankruptcy is the right move, is to speak to an experienced bankruptcy lawyer. If you’re drowning in debt and your assets are in jeopardy, you should call now and start the process of getting your finances under control.