Nobody plans for bankruptcy, you just find yourself in deep financial situations that lead you to it. When you get bankrupt, you should seek for professional help from bankruptcy attorneys. They will advise you on the steps you need to take to ease your situation. Below are the steps people take when they get bankrupt and how their choices impact on their situation.
Doing nothing
You are bankrupt, yes, but that is not the end of the world. You should not just sit back and make your situation a chair to sit on and pity yourself. Everybody falls at one time, or another, but some opt to stand up while others remain down. Doing nothing about your situations puts your assets and ultimately your future at risk. You can start by getting a lawyer who will help you secure some of your property. Doing this promptly will help you in protecting your assets from your creditors.
Filing for bankruptcy
Your lawyer might advise you to file for bankruptcy. You should know that when filing for bankruptcy, there are two chapters involved; chapter 7 and chapter 13. Assess your current financial situation and capability to pay off debts before you determine which one you will go for.
In chapter 13, also known as the reorganization chapter, one is given a plan in which he will pay the creditors. The usual period given is 5 years. When you choose chapter 13 bankruptcy, you are at no risk of losing your property to your creditors.
Chapter 7 is somehow different from chapter 13. Unlike chapter 13 which takes 3-5 years, chapter 7 only takes 3 months. In this chapter, you will have any unsecured loans dismissed. The court decides which property or assets will be sold to pay off the creditors. With a good bankruptcy lawyer, the client can get to secure most of his assets which will not be included in paying off the debt. Most people opt for this chapter because it gives people a fresh start and it is much less complicated than the latter.
