Bankruptcy Lawyer Bridgeport, CT
Debt can pile up slowly over time or all at once. Either way, it’s hard to prepare for what to do to handle it. It can feel like debt is taking over life and cause you to live in an almost constant state of stress. But that doesn’t have to be the case. Finding a Bridgeport, CT bankruptcy lawyer to assess your situation can help you understand your options to get out of debt and get a fresh start. The Law Offices of Ronald I. Chorches has an excellent team of attorneys that can help you. Call us today to set up a consultation to learn how you can get out from under your mountain of debt.
Every Situation is Unique
There are many forms of debt relief that can help you reduce your debt such as bankruptcy, debt settlement, and debt consolidation. Understanding which form of debt relief will benefit you the most is hard to do without sound legal advice from a lawyer. Bankruptcy lawyers know the nuances of the legal system. They will request financial documents and ask you questions about your past and current circumstances. They will also want to understand your future plans and goals. Based on this evaluation they will advise you on what your best options are so you can make an informed decision.
Different Types of Bankruptcy
If you have weighed your options and are considering bankruptcy, it is important to know that there are two different types. A knowledgeable bankruptcy lawyer in Bridgeport, CT from a firm like The Law Offices of Ronald I. Chorches can explain the differences between Chapter 7 and 13 bankruptcy in depth. In short, although there is some overlap, the two types of bankruptcy cover different forms of debt and the course of action for them are different.
- Chapter 7 – In this form of bankruptcy, your assets are “liquidated” or sold to pay for your debts. You can use Chapter 7 to pay off medical bills, collection payments, utility bills, rent, and personal loans. Assets like stocks, luxury items and collections will be liquidated and sold. Other assets like your house, car, and jewelry may also be sold depending on the value of the item.
- Chapter 13 – If you file for Chapter 13, you will reorganize your debt. In this situation you can keep your assets and instead you will make a plan for paying off a certain portion of your debt over an agreed upon time period. If you are successful in paying on time in the agreed upon amounts, the remaining debt will be forgiven, or discharged, when you complete the plan. Chapter 13 is a good option for those that have a steady income that they can allocate to debt.
Weighing Whether You Should File for Bankruptcy
There are benefits and drawbacks to filing for bankruptcy. One of the biggest drawbacks is that it will negatively affect your credit score for a number of years after you file. It can make it hard to purchase a house, get a loan, or open a credit card account. On the other hand, if you are not able to pay off your debt anytime in the near future, bankruptcy can offer you a path forward.
People go into debt for lots of different reasons and it doesn’t make you a bad person. You don’t deserve to live in a perpetual state of stress. Reach out to the Law Offices of Ronald I. Chorches today to find a bankruptcy lawyer in Bridgeport, CT and begin the process of freeing yourself from debt.