If you’re deep in debts, bankruptcy is one of the ways you can redeem yourself. Deciding to file for bankruptcy is an important step. You must consider the implications of your decision, check all your options, and find out what it can do for you (and what it can’t). Understanding bankruptcy is crucial to getting the best possible outcome of your situation.
At the GPS Law Group, we can help you establish a bankruptcy strategy to help you learn more about your options. Your attorney will be there to guide you through the entire process and work with you as you get your life back on track.
When Should You File for Bankruptcy?
Before you decide that there’s no other option than to file for bankruptcy, make sure to examine your condition. A major thing to consider is that while it is a good way out of drowning debts, it affects your credit for a long time.
You can examine your financial situation by considering the following:
- Be certain of how much debt you owe
- Consider whether you use credit cards to pay for needs
- Consider whether you only make small payments on your credit card
- Consider debt consolidation
Before you make up your mind, examine your financial situation. If the value of your assets in its entirety is less than the debt you owe, then bankruptcy may be the right option for you.
Steps to Take
After you have made up your mind that filing for bankruptcy is the only solution, you may still be unsure about the steps you need to take.
- Get an Experienced Attorney
The first thing to do is to find an attorney who has experience with bankruptcy law. They will be your guide through the entire process. Feel free to ask questions if you’re confused.
- Conduct a Bankruptcy Counselling Session
You must complete mandatory counselling sessions with a counselling agency. The counselling agency must have the approval of the US Department of Justice. These sessions will address issues like the pros, cons, and alternatives to bankruptcy.
- File Bankruptcy with the Court
After your counselling sessions, you may proceed to file with the court. Your credit report will include bankruptcy so that creditors will know not to bother you to collect on your debts.
What Bankruptcy Can’t Do
Bankruptcy doesn’t take care of all your financial issues. Here’s a list of some thing’s bankruptcy can’t do for you:
End Child Support and Alimony Obligations
Bankruptcy will not take care of whatever payments you’re to make on child support or alimony.
Get Rid of Nondischargeable Debts
Under both Chapter 7 and chapter 13, certain debts are nondischargeable and you will still have to clear them. Nondischargeable debts include:
- fines and penalties such as traffic tickets and criminal restitution
- debts you didn’t include in your bankruptcy paper
- debts incurred from an accident during intoxicated driving
Drop Student Loan Debts
Unless you meet certain stringent standards, student loans can not likely be removed from your list of debt.
Contact Our Office Today!
Filing for bankruptcy is complex and can be burdensome. You can receive guidance from expert attorneys at GPS Law Group. You can contact us at 704-741-9957 if you have questions about Chapters 7 and 13 or other issues concerning bankruptcy. We offer bankruptcy law services to those in Charlotte, Gastonia, Concord, Huntersville, and surrounding communities in Mecklenburg County, Rowan County, Cabarrus County, Iredell County, and Gaston County, North Carolina.