Filing for bankruptcy can already be a frightening thought for some people. Even though it clears you of the debt you have, it can impact your credit for a long time. This can reduce your ability to open a credit card or take out a loan, even if you really need it and will be able to pay it back. Therefore, most people don’t take the idea of filing for bankruptcy lightly. Before you make the final decision, meeting with bankruptcy attorneys in Waynesboro, VA, can help you determine if bankruptcy is right for you and if so, which type is the best option for your specific situation.
This is the type of bankruptcy that most people think of when they hear the word bankruptcy. During this process, you will need to submit all of the debt you have to your bankruptcy attorneys in Waynesboro, VA. Some of these debts, particularly student loan debts, can’t be discharged in the bankruptcy. Depending on the debt, you may lose some of your belongings. For instance, if you have a car payment that goes into the bankruptcy, you may need to give up the car. You can keep certain debts out, though. If you have any assets, those must be applied to the debts before they are discharged completely.
Another option bankruptcy attorneys in Waynesboro, VA, will help you understand is Chapter 13. With this type of bankruptcy, your debt won’t be discharged with nothing more expected of you. Instead, your debt will be restructured so you can better afford your payments with a lower interest rate and a reduced amount. This will help make your debt more manageable for you without having as big of an impact on your credit rating. You will still need to pay a portion of your debt, but it will be easier for you.
Filing for bankruptcy doesn’t have to be scary if you know what your options are. Experienced bankruptcy attorneys in Waynesboro, VA, can help you understand what each of the types of bankruptcy mean and decide which one is best for you. If you have a job, filing for Chapter 13 is likely a better option for you so your credit doesn’t suffer as much. However, if you simply can’t make your payments and need a fresh start, a Chapter 7 bankruptcy can work for you. It can take time to rebuild your credit, but for some people, it is well worth it.