Are you overwhelmed by debt and unsure if bankruptcy is the right move for your financial future? Or if you’ve been asking yourself, “Should I file bankruptcy?”. There isn’t a single general response to this question, as choosing whether or not to declare bankruptcy depends on various factors specific to your financial situation. However, some may find that filing for bankruptcy can relieve overwhelming debt.
Before filing for bankruptcy, it is vital to thoroughly assess your financial situation and understand how this process will affect you in the long term. The Law Office of Clark Daniel Dray, located in Denver, Colorado, can provide legal advice and guidance from our bankruptcy lawyer as you need to make an informed decision for your bankruptcy case. We know how challenging it can be to make this choice, so we offer tailored solutions to your bankruptcy case.
Don’t hesitate to contact us, as we provide free consultations to reach out and get the debtor education and credit counseling you need. Go to our website, Law Office of Clark Daniel Dray, today and let us help you decide if filing for bankruptcy is the best choice. Call our Denver bankruptcy law firm to learn more!
What is Bankruptcy?
A legal procedure known as bankruptcy allows people or businesses unable to pay their loans or debts to creditors to get debt relief from some or all of their credit loans by restructuring and reorganizing the payments. The debtor needs to settle these types of debts in declaring bankruptcy: secured debt, unsecured debt, revolving debt, or a mortgage.
After the debtor identifies what kind of debt they incurred, they will file a bankruptcy petition with a bankruptcy court, which will then evaluate the petitioner’s financial situation, credit report, and credit score and set up a payment plan it is best for both of them the debtor and the creditor within the basis of bankruptcy law.
The debtor is discharged from debts that cannot be paid, like credit card debt. The process of filing for bankruptcy can help provide debt relief and debt settlement from creditor collection efforts and stop judgments and foreclosure action.
Types of Bankruptcy
The two most common types of bankruptcies in Denver, Colorado, are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
Chapter 7 is called “liquidation bankruptcy” because a sale involves a debtor’s assets to repay creditors. All non-exempt property is sold, and the proceeds are used to pay off debts. After all, debts have been paid, the remaining debt is discharged, and the debtor is relieved of their obligations.
Chapter 13 Bankruptcy
Reorganization bankruptcy usually referred to as Chapter 13 bankruptcy, allows debtors to keep most of their assets while reorganizing their payment plan over 3-5 years. During this time, the debtor must make regular payments to the court-appointed bankruptcy trustee, who will then distribute these payments to creditors. At the end of this period, any remaining debt is discharged, and the debtor’s obligations are relieved.
These are two of the most popular types of bankruptcies, but there are other kinds that you can explore if you need to. Regardless of your type of bankruptcy, it’s important to remember that filing for bankruptcy is a big decision with significant consequences. It’s important to research all available options and ensure you understand the process before making any final decisions.
The Law Office Clark Daniel Dray is knowledgeable of the complex nature of bankruptcy, bankruptcy cases, and bankruptcy code proceedings and can aid in your decision-making about your situation’s best course of action. Our bankruptcy attorney has experience with Chapter 7 bankruptcy and Chapter 13 bankruptcy filings and will work with you to determine which type of bankruptcy is right for you.
Benefits of Bankruptcy
Debtors who file for bankruptcy may get a new financial start, allowing them to reorganize their finances and repay creditors over time.
- Get debt relief from creditors
- Get a fresh financial start
- Repay debts over time
- Emotional benefits
- Relief from overwhelming stress
- The feeling of control over finances regained
Pros and Cons of Filing for Bankruptcy
Bankruptcy can be a powerful tool for individuals looking to get out of their debt, but it should be considered a big decision and can affect your life. Before filing for bankruptcy, one should weigh the benefits and drawbacks.
Pros: The primary benefit of filing for bankruptcy is that it can provide debtors with a clean financial slate by wiping out most of their debt. Bankruptcy can also provide some protection from debt collectors by legally preventing them from harassing the debtor or attempting to collect any dischargeable debt.
Cons: On the downside, filing for bankruptcy will harm your credit score, making it challenging to open up fresh credit lines. Additionally, bankruptcy should only be considered a last resort after exhausting all other possibilities, as there may be long-term financial and legal implications associated with filing for bankruptcy that should be considered. Before you decide, you must understand all the consequences to make an informed decision.
Ultimately, whether you should file bankruptcy is an individual question that should be answered by carefully weighing your options. The Law Office of Clark Daniel Dray offers a free consultation to help you decide to ensure that you are fully informed about all of the benefits and consequences of filing for bankruptcy. Get in touch with Clark Daniel Dray’s law office today to get advice on if filing for bankruptcy is the best option for you.
Call our Denver Bankruptcy Attorney Now!
If you are considering filing for bankruptcy, the Law Office of Clark Daniel Dray is here to help. We provide experienced and knowledgeable advice through each phase of the process in order for you to decide with understanding about your financial future. Contact our office today to begin the bankruptcy filing procedure and see how we may assist you in gaining financial control.
Bankruptcy should not be taken lightly, but with the right guidance and advice, it could be the best course of action in some cases. By working with a qualified attorney from the Law Office of Clark Daniel Dray, you will be able to ensure that you are educated about all of your options before making a decision about should I file for bankruptcy or not. Contact us today to get started.