If the past few years were difficult for you financially, you are not alone. Bills keep piling up, and you cannot make ends meet. It is overwhelming to always be behind on bills, fielding calls from bill collectors left and right. Maybe 2023 is the year that you are free from all of that.
By filing for bankruptcy, you give yourself a fresh start. You can start again with a new budget and lifestyle within your means. Eliminate your current debt and keep your same income to begin 2023 like a breath of fresh air.
What to Know About Chapter 7 Bankruptcy
When you file for bankruptcy, there are some things you need to know. First, not everyone qualifies for Chapter 7. But if you want to clear personal debt instead of business debt, you can see if you are eligible.
Some things to know:
· Not All Debts Can Be Cleared: Some debts do not qualify for bankruptcy, such as alimony, child support, student loans, and taxes. If you have mostly consumer debt, then you can clear those debts. But some assets will need to be sold to help pay off the debt.
· Some Assets Are Protected: Your home, care, and essential assets are protected from bankruptcy. For example, you can keep your primary place of living and one car.
· Timing Is Essential: Learn about the best time to file for bankruptcy. For example, is it best to file bankruptcy before or after a Christmas bonus? And what about asset transfers? If you transfer assets to someone else’s name, the transfer will be considered in your bankruptcy filing.
What does bankruptcy look like for you? It may just be your key to financial freedom. Living paycheck to paycheck and wondering how you are going to pay rent each month is no way to live.
Start fresh this new year with a new lease on life. While bankruptcy can seem like a low moment in your life, it gives you a chance to begin again and build your credit. Miles & Hatcher, LLP, can help you achieve that. Call to meet with a member of our team: (909) 481-4080.