Facing An Overwhelming Amount Of Debt? What To Consider Before Filing For Bankruptcy

Whether it’s medical bills, credit cards, or other debt, you may find yourself feeling overwhelmed and as if you may never get out from under. As a result, you may be considering the possibility of filing for bankruptcy. While this may be a viable option, there are several factors you should consider before making this decision. To ensure you know what is involved in the process, speak to a bankruptcy attorney in Richmond VA.

Chapter 7 or 13?

If you meet with a Richmond VA bankruptcy attorney at Canfield Wells, one of the most important topics of discussion will be whether you should file Chapter 7 or Chapter 13 bankruptcy. If you file Chapter 7, this will be simpler and allow you to liquidate your assets and rid yourself of unsecured debts without having to set up a repayment plan. If Chapter 13 is chosen, you will be required to establish a repayment plan with creditors, so keep this in mind.

Look at Other Options

During your meeting with a Richmond VA bankruptcy lawyer, it may be that you find out you have other options available to you besides filing for bankruptcy. For example, you may be able to take out a loan from your 401(k) to pay off your debts. Along with this, many government loans that are forgivable may be available to you via the CARES Act passed by Congress.

All Debts Won’t Go Away

When considering bankruptcy, always remember this does not mean all your debts will magically disappear. If you have secured debt such as a mortgage or car loan, the creditor will still be legally able to seize the property from you.

To make the right decision for your situation and ensure your finances are protected as much as possible, schedule a consultation today with a bankruptcy attorney in Richmond VA at Canfield Wells.