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Bankruptcy: an Alternative Financial Solution

Making the decision to file bankruptcy can be tough. Living in Cary, North Carolina, you might be struggling to repay your debts, you might be receiving harassment from creditors, or you might feel that the situation is hopeless. There are a lot of things to consider, some of which have no easy answers, and there is a perceived social stigma attached to bankruptcy which has persisted for years. However, there is nothing wrong with filing bankruptcy in fact, it may be the smartest decision you can make and a little bit of research and communication can help you decide whether or not to file. Finding a Cary bankruptcy attorney can be fairly easy, and with a good attorney, good information, and a good attitude, you can make the process as smooth and pain-free as possible.

What Is Bankruptcy?

Bankruptcy is, as the name suggests, the state of being unable to pay your debts in the traditional way or, depending on your situation, not at all. Filing for bankruptcy is a process in which you can either completely erase your debts or get them reorganized. There are some downsides to filing bankruptcy, but if you’re considering it, the pros most likely already outweigh the cons. The social stigma involved is no longer prevalent, but psychological; as long as you can think of filing for bankruptcy as an alternative solution and not something to be ashamed of, you’ll see that nobody else will notice or care. Once you have decided to file, you have a choice between two different types, called chapters: a chapter 7 or a chapter 13.

Chapter 13 Bankruptcy

This type of bankruptcy is a smart option for individuals or families facing foreclosure, as it not only allows you to reorganize and consolidate your debts, but also stops any and all creditors from contacting you. A chapter 13 can halt and prevent creditor harassment, and as this is not the type of bankruptcy which liquidates your assets, you will keep your home and your car.

Chapter 7 Bankruptcy

This type of bankruptcy is the type which completely erases your debts, but in the process, all of your assets are liquidated and used to pay off what you owe. You may not lose your property or your car, but any other assets will probably be liquidated, so before filing for a chapter 7, you should discuss with your attorney the full repercussions of this action. Like the 13, a 7 will stop creditor harassment, improving your life and reducing stress. There are many people who say that filing for bankruptcy will ruin your credit score, but that assertion is untrue; if you are deep enough in debt to consider filing for bankruptcy, filing can only improve your credit score. A bankruptcy does stay on your credit report for seven to ten years, but overall it has very little impact on the choices you need to make and the things you need to do in your life, and a good Cary bankruptcy attorney can make it happen.