While filing for bankruptcy is the only way for many people to find relief from debt and reclaim their lives, it's also a stressful and confusing legal experience. As you go through the process, your attorney's expertise will be an invaluable resource. Here, The Gil Law Firm in Dothan, AL, invites you to take advantage of their knowledge by asking a few simple questions.
Common Questions To Ask Before Filing For Bankruptcy
1. Is Chapter 7 The Best Route?
For borrowers who struggle to keep their heads above water, Chapter 7 bankruptcy is the ideal course of action. This program—also known as a liquidation—will eliminate most unsecured debt, providing an opportunity to start your financial life over. However, if you can afford to pay back your secured debts, Chapter 13 bankruptcy may be the better option.
2. Will I Have To Surrender My Property?
In exchange for discharging your unsecured debts in Chapter 7 bankruptcy, the trustee of the court will seize your assets to pay back some of your creditors. However, bankruptcy law makes much of your property exempt, including your house, vehicle, tools, family heirlooms, and even some jewelry. Part of your attorney's role is allowing you to keep as much of your belongings as possible.
3. Will I Be Able To Keep My House?
Every bankruptcy includes an automatic stay, which puts an immediate stop to all collections activities, including foreclosure. In Chapter 7 bankruptcy, this delay may afford you the time to modify your mortgage or relocate. However, if you intend to catch up on missed mortgage payments, Chapter 13 bankruptcy will allow you to keep your home and bring your loan up to date.
No matter what your financial situation may be, you can rely on The Gil Law Firm to guide you through the complexities of the bankruptcy process. Call their offices today at (334) 673-0100 to schedule a consultation, or visit the website to learn more about their services.