Bankruptcy can be a good option to get out of overwhelming debt and starting anew; however, not everyone qualifies for filing for bankruptcy. If you’re currently weighed down by large amounts of debt and bills you cannot pay, we offer a free consultation to help you discover if bankruptcy is right for you.
Here are 3 factors to consider when determining if bankruptcy is right for you.
Will bankruptcy help your situation?
Overwhelming debt is stressful and can lead to anxiety and despair. At The Law Offices of John T. Orcutt in Wilmington, NC, we’re here to help you handle your debt and get rid of those feelings.
It’s important to remember bankruptcy is not a get-out-of-jail free card. Priority obligations, like student loans, typically are not eliminated when you file for bankruptcy. Creditors want their money and something is better than nothing. Depending on your situation, it may be better to settle your debt outside of bankruptcy.
Are you facing a lawsuit?
Creditors can file suit against you to get their money. If successful, they can garnish your wages or put liens on your assets. Filing for bankruptcy places an automatic stay on nearly all debt collections, including lawsuits. Legally, this means that creditors are forbidden from pursuing collection from you. Lawsuits and debt collectors are a huge financial and emotional burden, and bankruptcy could provide necessary relief.
We can help you get relief.
What kind of bankruptcy should you file for?
The terms Chapter 7 and Chapter 13 bankruptcy get thrown around so often it can be confusing to figure it all out. Whether you choose to file for one or the other depends on a wide variety of factors including:
- What you want to achieve by filing for bankruptcy
- What type of debt you owe
- How much income you have and what your expenses are
- What kind of property you own
Bankruptcy laws vary slightly depending where you live so it’s important to have a local attorney handle your case. Here at The Law Offices of John T. Orcutt, we are your Wilmington bankruptcy lawyers and will help you find the relief you need.