Financial difficulty can
happen to anyone. Though it’s often stigmatized as a sign of poor money
management, falling into debt is all too easy in an economy full of
credit-based transactions and immediate financial needs. That’s why bankruptcy
exists -- not as a punishment, but as a way forward.
At our law office in Edmonds, we
help people navigate the complex process regularly. In our experience, it’s a
crucial resource that can save families from ruin and end harassment from
debtors. It does have wide-reaching implications, though, so it’s vital to know
what you’re getting into before you commit to declaring bankruptcy.
When
to File, and What Happens
The first thing to know is
that filing for bankruptcy is a last resort. That’s not just advice -- it’s
built into the process. Before you can declare it, you’ll have to show that you
can’t reasonably repay your current debts.
From there, you have to
decide which type of bankruptcy is right for you. For most people, that’s
Chapter 7 bankruptcy, which involves allowing a federal court trustee to
supervise the sale of any non-exempt assets. It can’t get you out of certain
obligations, like out-ordered alimony and child support, taxes, and student
loans.
Chapter 13 bankruptcy, on
the other hand, lets you keep your property but involves creating a plan to
partially or completely pay off your debt. If you need advice on which option
works best for you, visit your local law office for
a consultation.
