Preparing for Bankruptcy
Sometimes, financial difficulties may become too much for one to handle. With the abounding methods available to accrue debt, it’s no wonder than many individuals find themselves overwhelmed with too many bills to pay off and too little money to do so. If you find yourself in these circumstances, with no other options at your disposal to remedy the situation, then bankruptcy may be the best option for you.
Deciding which chapter bankruptcy is best for you
For individuals, there are two main types (or chapters) of bankruptcy that may be followed:
- Chapter 7 Bankruptcy: This is a form of bankruptcy in which the filer liquidates his or her assets in order to pay off the accrued debt.
- Chapter 13 Bankruptcy: This type of bankruptcy allows the individual to reorganize and restructure his or her debt payment plans to make the monthly payments more reasonable.
The First Steps
There are several steps that we recommend you take if you do decide that bankruptcy is the best option for you with regards to your current financial situation. After contacting a lawyer to help guide you through the process, it is highly recommended that you quit using your credit cards immediately in order to stop building up debt. Talk with your attorney about which debts you should pay off immediately and which ones you should leave. Put together all documents that may be pertinent to the bankruptcy process, such as bills, bank statements, or paycheck stubs.
Contact Us
If you would like to learn more about filing for bankruptcy, then the Austin bankruptcy lawyers of Slater, Kennon & Pugh Ltd.LLP can help you. Please contact our offices today at 512-338-1100 to discuss your situation.