Times are tough for many people today. I see folks in my office every day that are down on their luck. For most of us, it’s difficult to ask for help when it comes to their finances. Many people will hide their heads in the sand, avoiding the issue, even as they are losing their car… or worse yet, their home. Facing these problems head-on and filing for bankruptcy is one of the best courses of action that you have.
Why Do Most People File for Bankruptcy?
There are several reasons why most people file for bankruptcy, but it all comes down to significant events or issues in a life that can cause someone’s financial position to flip upside down. Things like divorce, the sudden death of a loved one, major medical issues and accompanying bills, or job loss all frequently occur these days. Any or all these issues can make your finances go haywire, and it doesn’t take long for it to cause real problems in your life.
Your Emergency Fund
It’s a good practice to have an emergency, or “rainy day” fund, to protect yourself in a downturn. You should have set aside three to six months’ worth of living expenses. Your fund should consist of cash or assets that can easily be turned into cash. If you haven’t done this, or if you’ve exhausted your emergency fund, it’s time to consider filing bankruptcy.
Why File Bankruptcy?
You are not alone, and not the first person to find themselves in a bad way financially. Bankruptcy is a legal way to get relief and form a plan to get back on your feet. The two main options, Chapter 7 and Chapter 13, both offer ways to clear up debt and get on with your life. Either option creates a better way to resolve overwhelming debt and get on with your life.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy allows you to have a portion of your debt discharged and eliminated. The process takes several months. But when it’s complete, it will enable you to start again with a clean slate.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a way of restructuring your debt and developing a plan to pay it off effectively. The entire process takes three to five years, while you make payments according to your agreed-upon plan.
Do I Need a Lawyer to File Bankruptcy?
Technically speaking, you can file on your own. However, bankruptcy can be complicated, and giving yourself the advantage of a great bankruptcy lawyer can make all the difference in whether or not your bankruptcy filing is successful. The minimal cost of hiring a bankruptcy attorney is nothing compared to the relief it can provide for you and your family.
What are My First Steps to File Bankruptcy?
Once you realize that this is your best option, or if you can use a sounding board to find out that is it a good plan, contact our offices at Bolden and Little, LLC in Southern Georgia. Make an appointment for a consultation, and let’s review your options. Whatever you do, don’t suffer in silence, hoping things will magically get better. Come in and see us, and let’s make a plan!