{"id":5876,"date":"2021-02-28T08:11:03","date_gmt":"2021-02-28T08:11:03","guid":{"rendered":"https:\/\/mcintirelaw.com\/?p=5876"},"modified":"2023-08-09T10:24:33","modified_gmt":"2023-08-09T10:24:33","slug":"choosing-the-right-bankruptcy-option-for-you","status":"publish","type":"post","link":"https:\/\/mcintirelaw.com\/choosing-the-right-bankruptcy-option-for-you\/","title":{"rendered":"Choosing the Right Bankruptcy Option for You"},"content":{"rendered":"

The bankruptcy filing allows you to have a fresh start and secure your financial future. Filing for bankruptcy enables the filer to either pay off or wipe out debts to a creditor. A debtor files a petition in bankruptcy if he or she is no longer capable of paying his or her debts. Once the bankruptcy court has approved the bankruptcy petition, an automatic stay will take effect. Such bankruptcy protection is helpful against wage garnishment, foreclosure, and creditor harassment. An automatic stay prohibits any collection activities from debt collectors, including phone calls and emails.<\/span><\/p>\n

There are qualifications that you must meet when you file for bankruptcy<\/a>. A bankruptcy means test<\/a> is being used to determine whether an individual is eligible to file a petition for bankruptcy under certain chapters. Generally, your monthly income and living expenses will factor in if you want to be able to file for bankruptcy<\/a>.<\/span><\/p>\n

When declaring bankruptcy, the choice on the filing chapter will also depend on what types of debt you owe from your creditors. There are different types of debt, which are often categorized as unsecured debt and secured debt. Unsecured debts include credit card bills and medical bills. These types of debt are dischargeable when you file bankruptcy<\/a>. On the other hand, secured debt and obligations such as child support, alimony, student loan<\/a> debt, and tax debt are non-dischargeable. Several benefits come with filing personal bankruptcy. For most, however, the main goal of filing bankruptcy is to eliminate your debts and obtain a bankruptcy discharge.<\/span><\/p>\n

Understanding relevant bankruptcy law is important to avoid legal issues during the actual bankruptcy process. Consulting a bankruptcy attorney<\/a> is highly advisable for you to decide which would be best for your bankruptcy case. The most common choices are Bankruptcy Chapter 7 (or liquidation bankruptcy) and Chapter 13 (or reorganization bankruptcy).<\/span><\/p>\n

<\/span>Chapter 7 Bankruptcy<\/span><\/i><\/span><\/h2>
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