When debt becomes overwhelming and you've fallen hopelessly behind, a possible option is declaring bankruptcy. Bankruptcy is a legal option that relieves some or all of an individuals personal debts. It provides a fresh start that can be extremely helpful for individuals with the right circumstances. However, it does also have some drawbacks, and an experienced attorney is needed to help guide the process.

Types of Bankruptcy

There are two different types of bankruptcy commonly filed for that are set out by Federal law. They are commonly referred to by the chapter numbers that identify them. Chapters 7 and Chapter 13 are the two most commonly used types of bankruptcy.

Chapter 7 Bankruptcy

Chapter 7 Bankruptcies are the most common, and are also called 'liquidation bankruptcies'. In Chapter 7 bankruptcies, all of a persons assets are sold to pay back debts, and once all assets have been disposed of, the remaining debts are discharged. However, some property may be exempt, so in some situations eligible debts can be discharged without any loss of property. Attorney Barrett is well versed in the complicated areas of bankruptcy law and can help ensure any eligible assets are exempted.

Chapter 13 Bankruptcy

Less commonly, a consumer might file for a Chapter 13 Bankruptcy. Chapter 13  is used by people who do have some income, and believe their debt crises will be temporary. With the help of Attorney Barrett, a Chapter 13 filer will create a personalized repayment plan that helps them get back on financial track. Once the terms of the approved repayment plan are met, all remaining debts are discharged.

Choosing which type

Both types of bankruptcy have different benefits and challenges. If you're unsure about the best way out of your financial situation, having the help of someone who has successfully guided hundreds of consumers just like you through difficult financial situations will be vital to ensure your freedom from debt and a clear way to move forward to financial security. Attorney Andrew Barrett has been working with individuals and families in debt crisis for more than twenty years, and can help free you from the burden of debt.