One of the biggest questions when filing for bankruptcy is what do you have to get rid of and what do you get to keep afterward? This is one of the things that stops many people from filing bankruptcy, but the things that you want to keep may be the same things that are weighing you down and causing you to be in debt. If you aren't sure about filing for bankruptcy because you don't think you'll be able to keep any of your assets, you may want to talk to a bankruptcy attorney to better understand the process and what all is involved.
What Do You Get To Keep?
Your bankruptcy trustee is going to go through all of your debts and creditors to see what all you owe and why you owe it. The trustee will look at what is a necessity and what you can most likely do without. You need that roof over your head and the vehicle to get to and from work every day, but you may not need a motorcycle, boat, recreational vehicles. If you have a lot of extras such as these laying around your home and are worth some money, your trustee may have you sell these or give them back to the bank if you have outstanding loans on them in order to pay back some of your debt or to lower your debt. If, however, you live in a home that is beyond your means, you may need to give the house back to the bank and move into something that is more affordable for you.
What Happens After Bankruptcy?
After you have filed for bankruptcy, you can get loans for the assets you gave up. You could end up back in the same predicament though, but you will be able to qualify for loans for a home or for other things after your bankruptcy has been discharged, but you should be careful in doing so to prevent getting back into the same financial situation. Your bankruptcy is not a red mark on your credit history, it shows you resolved your debt and you could actually have better credit after you filed for bankruptcy than before you filed.
If you aren't sure about filing for bankruptcy because you're afraid of what you'll lose, consider what you'll gain after filing. You'll have financial freedom and a new start. Contact a debt consolidation lawyer for more information.
Share11 December 2020
If your mountain of debt has grown so tremendous that you can't imagine a way out, then you need to contact a bankruptcy attorney. Even though filing bankruptcy can seem like cheating, it is sometimes the only option when you have consumer or medical debt that is consuming your paycheck and then being left unpaid. An attorney can take a look at your finances and recommend a pathway out of debt utilizing one of the several types of bankruptcy available. Learning more about this process can make it seem more approachable. Dig into the articles on this website to get started with that learning.
