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Understanding Your Bankruptcy Options

Posted on in Bankruptcy

Many people assume that debt is inherently bad. The truth, however, is that debt and credit can be tools that allow individuals to live more comfortable, fruitful lives. Loans help people buy homes and attend college, and credit can help those who find themselves in temporary financial hardship. Unfortunately, poor financial management and unexpected circumstances can cause debt to spiral out of control. When this happens, bankruptcy might be a viable option.

Filing bankruptcy is a serious choice, but it is often a smart decision. If you are considering bankruptcy, you should discuss your case with an experienced attorney. A bankruptcy lawyer can help you avoid mistakes that could compromise your interests.

Is Bankruptcy the Right Option?

For individuals, the two most common forms of bankruptcy are chapters 7 and 13. The right choice depends on how much you owe, your income, your asset value, and a few other factors.

During chapter 7 bankruptcy, the court may dismiss certain debts. However, chapter 7 bankruptcy cannot dismiss all types of debt. Examples of non-dischargeable debts include:

  • Student loans;
  • Spousal support, child support, and alimony;
  • Court penalties and fines; and
  • Certain tax debts.

Chapter 13 bankruptcy allows the debtor to restructure his or her debt to make it more manageable. According to Uscourts.gov, filing chapter 13 bankruptcy will stop foreclosure or seizure of property.

Non-Bankruptcy Options

Though bankruptcy can create financial stability and provide freedom from debt, it is not the only option. Depending on the amount you owe and your income, you may be able simply to stick to a strict budget to manage your debt.

Contact a Bankruptcy Lawyer in Arlington Heights for Guidance

If you would like to learn your options, contact an experienced Arlington Heights bankruptcy lawyer. At Newland & Newland, LLP, we offer free phone consultations for new clients. We can assess your case, explain your rights, and guide you down the path toward financial freedom. Call us today at 847-549-0000 to schedule an appointment.

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