As beneficial as filing for bankruptcy can be, the complexity of the season often leaves borrowers confused and overwhelmed. Will you have to surrender your property? Can you file your petition yourself, or will you need an attorney? Knowing the answers to these crucial questions can help you decide if bankruptcy is the right choice for you.

4 Bankruptcy FAQ Answered

Will I Lose All of My Property?

If you’re filing a chapter 7 bankruptcy, the trustee does have the right to seize some of your personal possessions to pay back your creditors, but you won’t lose everything. In fact, the bankruptcy code makes a wide range of property exempt from seizure, including some home equity, your vehicle, and your retirement savings. An experienced bankruptcy attorney will review your finances and help ensure you keep as many of your assets as possible.

Can Bankruptcy Prevent Foreclosure?

If your lender is foreclosing on your home, bankruptcy may provide a way out. Chapter 13 bankruptcies are designed to help those with sufficient income catch up on missed mortgage payments and avoid foreclosure. Discharging your unsecured debts in a chapter 7 may also help, freeing up money you can put towards your mortgage.

What Kind of Debts Can Be Discharged

Both chapter 7 and chapter 13 bankruptcies allow you to completely eliminate most unsecured debt, including credit cards, medical bills, and some legal judgments. In some cases, you may even be able to discharge your back taxes and other debts.

Do I Need an Attorney?

A great deal depends on the outcome of your bankruptcy filing, so you should always let an experienced legal professional handle it for you. They’ll make sure all eligible debts are included, prepare the paperwork, and even represent you at any court hearings.

Whatever your financial situation, you can rely on the skilled legal team at Padgett & Robertson, Attorneys at Law to help you reclaim your life from debt. For over 35 years, they’ve been serving clients throughout southern Alabama, putting them back on the path to solvency. To request a free consultation, visit their website or call (251) 342-0264, and like them on Facebook for regular tips and updates.