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A Credit Counselor Versus a Bankruptcy Attorney

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A Credit Counselor Versus a Bankruptcy Attorney

When I was drowning in debt, I knew that soon enough I would need to file for bankruptcy. I simply didn't make enough to cover the amount of debt I had accumulated. However, I was not sure whether I should work with a credit counselor or a bankruptcy attorney. I did a lot of research on the subject and found that there are pros and cons to working with both a credit counselor and a bankruptcy attorney, and that you also had the option of working with both at the same time. Ultimately, I decided to hire the attorney, but that may not be the best option for everyone. I created this website to help you understand what a credit counselor is and what they do, what a bankruptcy attorney is and what they do and how each can help you if you are drowning in debt.

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Frequently Asked Questions About Filing Bankruptcy

20 August 2021
 Categories: Law, Blog

Bankruptcy is a complicated matter no matter why you are filing or when. Regardless of your current assets, it is important that you understand the basics. These are some of the most common questions people have before they file bankruptcy:

What Does 'Insolvent' Mean?

If you claim to be insolvent, you claim that you are no longer able to pay your debts. You may have more liabilities than the average person, and you have insufficient income to pay back the debt. If you are insolvent, you may choose to file bankruptcy so you are no longer responsible for these debts.

What Is a Bankruptcy Petition?

When you fill out the bankruptcy petition, you list out your assets and liabilities. This document is filed with the court, and it focuses on how much you owe and why you are not able to pay off your debts.

What Does It Mean When Your Debt Is Discharged?

When your debts are discharged, you are released from your duty to pay them back. You are no longer required to make payments, and you can no longer be hounded by creditors to pay off your debts.

What Is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is a business reorganization filing. This means that the debt your business has taken on will be reorganized. You may continue to operate your business until you determine how your bankruptcy will play out. Certain types of property may be liquidated, for example.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is also known as the wage earner's plan for debt. If you file for Chapter 13 bankruptcy, you still earn an income. You will make a plan to pay back creditors, but you may need more time than the average person to do so. This is a good option if you still have a job.

What Is Chapter 7 Bankruptcy?

If you no longer have a job or are suddenly unable to work, you might file for Chapter 7 bankruptcy. Your property may be liquidated to pay off what you owe, and then the debt will be discharged from your account. This will take a significant toll on your credit.

Speak With a Bankruptcy Lawyer

Are you ready to move forward with filing your bankruptcy paperwork? Now is the best time to get professional help. Your lawyer can help you file your paperwork accurately and on time. Call a bankruptcy lawyer today to learn more about the steps you need to file.