Falling behind on debts and payments can be a scary and overwhelming experience. If you have tried to keep up with your creditors, and find it is simply impossible to continue, bankruptcy might be the right option. Read these answers to frequently asked questions to find if bankruptcy could be right for you.
Who Is Eligible To File?
Any business or individual who is unable to continue paying debts and does not have the assets to stay afloat can consider bankruptcy as an option. The terms and benefits that will be offered vary greatly by each individual case, and a Bankruptcy Attorney Edmond OK is required to negotiate with the court to get you the most favorable settlement. The timing should be considered carefully, as you are only allowed to do it once in a certain amount of time.
What Are The Downsides Of Filing For Bankruptcy?
The biggest disadvantage to filing bankruptcy is that your credit rating will suffer significantly. At the same time, if you are in the position to seriously consider bankruptcy, taking a loss to your credit rating will probably happen anyways with continued nonpayment of debts, if it hasn’t already. While in the short run you will have a lower credit, filing sooner rather than later may be better for it in the long run. Taking the hit sooner means rebuilding sooner. Click here for more details about the bankruptcy attorneys in Edmond OK.
What Is The Difference Between Chapter 7 And Chapter 13 Bankruptcy?
There are two main options for people seeking relief from their debt through bankruptcy, chapters 7 and 13. Chapter 7 is a more complete process. It allows the debtor to fully remove all or most of their debts, but they can have some of their assets liquidated to pay creditors. In chapter 13, rather than wipe the whole slate clean, the court helps the debtor reduce what is owed and structure a five year payment plan. If the debtor makes all payments during this period, some of their debt may simply be discharged. The benefit of chapter 13 is that it allows the debtor to keep all of their assets. This can include homes, vehicles, and other properties.
While no one relishes the prospect of declaring bankruptcy, it may not be as painful as you think and could be the right option for you. To find out more, contact a Bankruptcy Attorney Edmond OK from the Cain Law Office.
