How to Prepare for Bankruptcy
Bankruptcy is a painful thing to go through, whether you’re a business owner or simply an individual who is in over your head. Fortunately, when you’ve reviewed your plan and know how to prepare for bankruptcy, the process gets a little easier.
Our team at Rowdy G. Williams Law Firm understands how difficult the choice to file for bankruptcy may be, but we can help you prepare for your next steps. Reaching out for legal advice can help you. Contact us for help getting ready for your next steps.
Determining the Best Plan for You
If you believe bankruptcy is your best option, you’ll first need to choose what path will be best for you. Typically, individuals will choose between two types of bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 is a more extreme form of debt management meant to get you out of debt fast. This plan liquidates your assets so you can pay off your creditors at once and be debt-free as quickly as possible. Unfortunately, this could mean losing your assets, such as your home.
Chapter 13 is a little less extreme, but it will take longer to get you debt-free. This is a restructuring of your debt—you and an advisor will make a plan to pay off your debts within up to five years, and the court will ensure that your creditors will no longer pursue you for your debts.
Each plan has its merits, so be sure to discuss your plan carefully before you decide. An experienced bankruptcy lawyer can help you make the best decision for you and your family.
Calculating Your Assets and Expenses
No matter which plan you choose, however, you’ll need to consider your assets and expenses. These will be critical to deciding whether you’re eligible to file for bankruptcy. If you choose a Chapter 13 plan, the judge will need to know what you earn, what your expenses are, and what debts you have.
Some of these may seem clear, but what assets must be included? Typically, you’ll include any larger assets that might be deemed unnecessary, such as a second house or car. Some of your assets may be exempt, including the following:
- Residential property
- Insurance benefits
- Some pension benefits
- Some important personal property, such as medical devices
- Workers compensation
Contacting the Right Legal Help
Filing for bankruptcy is never easy. You’re in debt, and your home and personal property might be in jeopardy. This is tough, but if you handle it right, it can give you a new start.
Knowing how to prepare for bankruptcy gives you a better chance to handle what comes next, so be sure to act now and get the help you need to prepare. At Rowdy G. Williams Law Firm, we’ll make sure you get the help you need.
If you’re not sure what to prepare first or how to prepare it, give us a call at 1-812-232-7400 to set up a consultation. You can also reach us through the online contact form below.