Deciding if filing for bankruptcy is the right choice for you can be a difficult decision. How can you know if it is the right choice for you? The following Q&A can serve as a helpful starting point as you explore bankruptcy and how filing will affect you.
What is bankruptcy?
Bankruptcy is a legal proceeding that allows a person who cannot pay back his or her debts to erase certain debts and get a fresh financial start. For people who qualify, filing for bankruptcy is a legal right under federal law.
Is debt settlement better than bankruptcy?
Every debt relief option has pros and cons. What option is best for you depends on your specific situation. Debt settlement may be better than bankruptcy; however, it typically requires a large sum of cash up front to pay the settlement amounts, it can lead to tax liabilities, and settling one or two debts may not address your entire debt problem.
Will I lose everything if I file for bankruptcy?
Most people who file get to keep most or all of their personal belongings, property, and other assets. Your belongings and assets are protected through bankruptcy exemptions. If you have an asset that cannot be protected, we will discuss that before filing your bankruptcy case.
Will people know about my bankruptcy?
In general, no. While bankruptcy filings are a matter of public record, it is unlikely that your friends, family, or neighbors will find out about your bankruptcy unless you tell them about it. However, if someone you know is a co-debtor or one of your creditors, they will be notified of your bankruptcy filing.
Can bankruptcy erase all of my debts?
Certain types of debts can be erased through bankruptcy.
- Your dischargeable debts will be erased in a successful bankruptcy case. Dischargeable debts include credit cards, medical bills, personal loans, old tax debts that meet certain criteria, and other types of unsecured debts.
- Your nondischargeable debts will not be erased and must be paid back even after a successful bankruptcy. Nondischargeable debts include student loans, back child and spousal support payments, debts resulting from illegal activity, new tax liabilities, and certain other debts.
How do I know if bankruptcy is the right choice for me?
To explore whether bankruptcy is the right choice for you, we encourage you to meet with a bankruptcy attorney to review your specific situation. Many bankruptcy attorneys offer free consultations so you can understand your options without adding another bill.
We are proud to offer free consultations to anyone in or around Savannah, GA. All of us here at the Law Offices of Barbara B. Braziel want to help you get out from under the weight of financial stress and gain financial freedom. We invite you to read about the clients we’ve helped here.
Find out more about Bankruptcy in our guide: All About Bankruptcy
We proudly serve the people of Savannah, GA and the surrounding areas, including Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.