Making the choice to seek bankruptcy protection is likely something you did after an extended period of financial struggles and other complications. Debt collectors and creditors were contacting you at all hours of the day, and you decided that you wanted a better financial future for yourself and your family. Even if you believe that this step is the best way forward for your individual situation, you may have some concerns about what to expect from the process ahead.
Bankruptcy is a legal process that allows a consumer to get rid of certain types of debt. There are different bankruptcy options available to you, and the right choice will depend on the details of your individual situation, including the type of debt you owe. As you make choices that will benefit your future, it will help to have reasonable expectations for bankruptcy and an understanding of how this process could impact you.
Important facts for all applicants
Applicants who file for bankruptcy have debt they can no longer manage. While it offers many benefits, simple misunderstandings about bankruptcy and how it works may prevent an applicant from taking a step that is important for his or her future. The following facts about bankruptcy may help you make an important decision about your financial interests:
- Bankruptcy is only effective for certain types of debts. For example, it cannot discharge unpaid child support or student loan debt.
- Because of exemptions included in U.S. bankruptcy laws, you will not lose all of your personal possessions because you filed for bankruptcy.
- Bankruptcy does not ruin your financial future; in fact, it can help you improve your long-term financial situation after you complete the process.
- Filing for bankruptcy does not mean that you failed, and it is not a reflection of your personal character or ability to succeed.
The most common chapters of consumer bankruptcy are Chapter 7 and Chapter 13. The right option for you depends on the type of debt you owe, your income and other factors.
What’s best for your future?
The intent of bankruptcy is to offer Georgia consumers the opportunity to rebuild their lives after unmanageable debt. An assessment of your specific case can help you understand what path is best for your situation and what steps you can take for a better future. Your current financial situation may seem unmanageable and inescapable, but bankruptcy could offer you a way out.
