At some point in our lives, many of us have experienced tough times when it comes to finances. In 2016 alone, almost 800,000 people filed for bankruptcy in the United States. Of those, nearly half a million filed for Chapter 7 bankruptcy.1 Those numbers show that many people turn to bankruptcy to give them a chance to start fresh or reorganize their debts.
Bankruptcy can help you:
- Lower your monthly payments
- Get a fresh start
- Re-establish your credit
- Stop harassment from collection agencies
- Stop wage garnishment and/or repossession
Not just anyone should file bankruptcy. Although it can be a great option to get you out from underneath what feels like a mounting pile of debt, the option of filing for bankruptcy is one that should be carefully considered, as it will impact your ability to apply for credit for a period of time.
Potential signs you may want to consider filing for bankruptcy:
- You are more than a month behind on your mortgage payment
- You are behind on your vehicle payment and can’t catch up
- You can’t meet your basic needs such as housing, groceries, utilities, etc.
- You resort to high-interest loans such as cash advances and payday loans
- You have unexpected expenses such as medical bills
- You lost a source of major income
- You have tax debt that can’t be paid off in the next two years
- You received a notice of your home being foreclosed on
- You received a notice of your car being repossessed
Chapter 7 vs. Chapter 13 Bankruptcy
Many individuals and families facing overwhelming debt opt to file for chapter 7 bankruptcy as a way to get a fresh start and erase many debts owed. Chapter 7 is the most common form of bankruptcy in the United States and allows individuals to keep certain exempt property, in some cases even homes and vehicles.
Chapter 13 bankruptcy is a way to reorganize your debts into a more manageable monthly payment, and is often used to permanently stop a home foreclosure or vehicle repossession. The debtor will have three to five years to make payments before remaining debts are then discharged.
Filing for Bankruptcy in Sheboygan
At Darrow & Dietrich Law Offices, we know that deciding to file for bankruptcy is never easy. We focus on both Chapter 7 and Chapter 13 bankruptcy, and can help you decide which option is best for you. Contact us today to schedule your free initial consultation with one of our bankruptcy experts.