Handling finance isn’t an easy task, especially for small businesses. If something falls through, or an unprecedented disaster affects your life, you might find yourself in debt you can’t feasibly pay. It’s usually a last resort to claim bankruptcy, but it can be lifesaving for people struggling. One of the biggest misconceptions about this process is that it can act as a “get out of jail free card” for debt. This is not the case. You will be required to either liquidate your assets (Ch.
7) or lock into a payment plan (Ch.13).
Chapter 13 bankruptcy is known as Debt Adjustment, and entails setting up a payment plan that is legally binding after the agreement is made. In this process, you’ll want to find a bankruptcy attorney to help inform decisions and represent you in the face of the legal system. They’ve likely seen a lifetime of cases and might be an integral resource in finding the best avenue for financial recovery.
The above video is an example of free basic legal counseling available on the internet. Doing research is integral to keeping your rights when tangling with debt and obligation. Finally, it’s best to familiarize with your state’s policy, in case there are unique specifications. New York bankruptcy lawyers may have different processes than, say, a New Mexico lawyer. Information is your friend in all cases.