Unexpected medical emergencies, job losses, and a whole host of other situations can result in overwhelming debt, through no fault of your own. Fortunately, bankruptcy protection may allow you to discharge most of these debts, giving you the opportunity to rebuild your life. However, bankruptcy law is extremely complex, with many aspects to consider before deciding whether filing for debt relief is right for you.

Types of Bankruptcy

Depending on your circumstances, you may qualify for either Chapter 7 or Chapter 13 bankruptcy protection. In Chapter 7, borrowers without the means to meet their financial obligations may have their unsecured debts eliminated completely, while Chapter 13 provides others with the opportunity to bring auto loans, mortgages, and other secured accounts current. Your bankruptcy attorney will help determine which program is most appropriate for your situation.

Forfeiture of Assets

A Chapter 7 bankruptcy will allow you to catch up on your debts, but, in exchange, the trustee of the court may seize some of your assets to pay back some of you creditors. However, bankruptcy law exempts a wide range of personal property from seizure, potentially allowing you to keep your home, vehicle, tools, and even some jewelry and family heirlooms.

Impact on Your Credit Report

Many borrowers who qualify for bankruptcy protection worry about the long-term impact on their credit report. While a bankruptcy filing does stay on your credit history for up to ten years, having a history of missed payments and delinquent accounts can be much more destructive in the long term. After filing for bankruptcy, many borrowers are surprised at how quickly they can begin rebuilding their credit.

For over 30 years, the Lein Law Offices has been helping borrowers in Winter and Hayward, WI with high-quality legal advice and a wide range of debt-relief options. Learn more about their extensive array of bankruptcy services online, or call (715) 634-4273 to discuss your case with an experienced local attorney.