Dealing with debt can be extremely difficult, especially when the debt has piled up discreetly. In situations like that, one usually does not realize just how much debt one has until it is too late to do anything about it! If you are currently in that situation, or a similar situation, you may be considering filing for bankruptcy. There are many reasons people are afraid of bankruptcy or try to avoid filing, but if you truly are considering filing, chances are you have needed to file for a while now. It may be in your best interests to make an appointment with a bankruptcy attorney in Nashville as soon as you can.
A Legal Process
In order to prepare to file for bankruptcy, it is a good idea to understand just what bankruptcy is. In its most general sense, it is a legal way to either erase debt or consolidate debt in a specific way in order to better distribute payment. If you feel that you are in too much debt and you are struggling or simply unable to repay your creditors, then bankruptcy is a good option for you. After all, debt has consequences that can be very high and detrimental.
Types of Bankruptcy
Bankruptcy for an individual, couple or family unit can differ in both execution and planning. There are two different types of bankruptcy available to you as a private citizen or couple: Chapter 7 and Chapter 13. A Chapter 7, which is more like a debt eraser than anything, includes asset liquidation. Chapter 13 does not require asset liquidation; however, it is not a debt eraser. Instead, it is designed to distribute payment as dictated by the trustee. There are pros and cons for each type of bankruptcy, but they both can help get you back on your feet if your situation is dire.
Regardless of which type of bankruptcy you choose to file, you will need to write a list of all of the assets you have. Legally, an asset is simply anything with monetary value, so anything from credit cards to PayPal accounts can count as an asset. Asset liquidation, which is part of a Chapter 7 bankruptcy, can actually help determine a course of action! As long as you and your bankruptcy attorney in Nashville do everything correctly, you can use filing for bankruptcy as a legitimate way to stop the chaos and start fresh financially!