By: Darrell Castle
Surely you’ve heard the term “bankruptcy.” But do you really know what it means?
I often find that people don’t really know what it means. They don’t take the time to learn about it before making judgements. It’s actually a really powerful tool that helps millions of people.
What is bankruptcy?
Bankruptcy is a fresh start for people struggling with debt they can’t pay. Bankruptcy is a way of relief. Bankruptcy is a chance to take bad misfortunes or decisions of your past and start new.
Bankruptcy is hope. Bankruptcy brings joy.
Are there different kinds of bankruptcy?
There are many different chapters of bankruptcy. Here at Darrell Castle & Associates, we practice two of them.
Chapter 7 bankruptcy is sometimes referred to as a “straight bankruptcy.” It’s a good option for those struggling with unsecured debt. Unsecured debt is debt that’s NOT backed by collateral — or property.
The most common types of unsecured debt that are included in bankruptcy are credit card and medical bills. When you fall behind on these payments, the creditor CANNOT take any property from you. But they can harass you with phone calls and garnish your wages.
By filing for Chapter 7 bankruptcy, you can discharge that unsecured debt relatively quickly without making any payments towards it. This process takes a few months.
And then there’s Chapter 13 bankruptcy. This is usually the best option if you’re behind on secured debt — or debt that IS backed by collateral.
Your house and car are the two best examples. If you fall behind on your mortgage or car payment, the bank can threaten to take your property — either through a foreclosure or a car repo.
By filing for Chapter 13 bankruptcy, you can STOP the foreclosure or car repo. Chapter 13 is a debt reorganization. Your unpaid bills and other debt is lumped into a repayment plan in which you make small affordable payments on your debt for a 3-5 year period.
Once your Chapter 13 plan is complete, you’re free of that debt, your house note is current and your car is completely paid off.
Why would someone want to file for bankruptcy?
There’s nothing fun about struggling with debt. It brings stress and worry that can become unbearable. And the longer you wait, the worst it can get (thanks interest rates!).
Harassing creditors will begin to call you at all times of the day and night. And eventually, your creditors will begin threatening to take things from you like I mentioned above. You don’t want that.
A bankruptcy offers relief. It offers a fresh start. It offers a great opportunity to clean your financial slate and begin rebuilding your finances the RIGHT way. And here’s a great tool that will help you with that!
How can you file for bankruptcy?
The decision to file for bankruptcy is a tough one for some. But the process is very easy with the right attorney!
An experienced bankruptcy attorney can help you decide which chapter — 7 or 13 — is best for you and your unique situation. All you have to do is schedule a free bankruptcy consultation. No charge. No obligation.
Call (901) 327-2100 today to schedule your free consultation.
What happens after bankruptcy?
To learn all you need to know about life after bankruptcy, click here to download my free report!