Understanding Your Bankruptcy Options

Broke businessman showing his empty walletUnderstanding Your Options for Bankruptcy

If you have tried other methods to regain control of your debts and nothing seems to work, bankruptcy is something to consider. Before you spend a lot of time wondering what this type of court ordered protection involves, schedule an appointment with a bankruptcy attorney Denver. Doing so will provide you with the chance to find out whatis involved with each form of personal bankruptcy.After looking over your affairs, there is a chance that your lawyer will recommend what is known as a Chapter 13 bankruptcy. This strategy places you under the protection of the court while you repay your debts according to a schedule worked out by the court. Instead of making payments to your individual creditors, all fundsare sent directly to the court. Your accountsare closed and they will not continue accruing interest. Over time, your debtis paid in full and the bankruptcyis discharged.When repaying your debts is not a possibility, your bankruptcy lawyer in Denver is likely to recommend what is known as a Chapter 7 bankruptcy. This type of protection is designed to settle all your debts in full. The method usually involves evaluating any assets or holdings you may have, and determining if any of them are eligible for sale while still allowing you to have what you need to maintain an equitable lifestyle. For example, if you have two vehicles and only need one to get back and forth to work, the court trustee may arrange to sell one and use those funds to partially settle your debts. The court dismisses any remaining amounts due, and you are free of those debts.

Call Now Button