When an individual or family is struggling financially, there are many concerns about bankruptcy. Just mentioning the word can carry negative, often shameful connotations. However, that shouldn’t be the case. Filing for bankruptcy is a perfectly viable — and beneficial — avenue for debt relief. Our Jamestown bankruptcy attorneys can guide you through the process every step of the way.
Concerns About Bankruptcy | Worried About Losing a House or Car
The absolute number one concern about bankruptcy I get when clients come in to discuss their situation with me is, “Can I keep my house and car in bankruptcy?” My answer is absolutely. You’re not going to lose your house or car. In a Chapter 7, you’re going to continue making those payments on a house or a car as you normally would. The bank is going to send us what’s called a reaffirmation agreement, and you’re going to sign those and continue to pay. Even if they don’t send you a bill, it’s important to continue to pay to keep those assets.
In a Chapter 13, you’re going to continue to make the house payment, but the vehicle payment is going to be through the plan. They’re going to get their money, instead of directly by you, indirectly by the Chapter 13 Trustee.
Benefits of Filing for Bankruptcy
One thing people worry about when they think about bankruptcy is that it’s the end of their life, whereas actually what they learn throughout the process it’s actually the beginning of a new stage or chapter in their life. The preconceived notion is that they’re going to lose everything. Actually, the only thing that they lose is their debt. For Chapter 7, we wipe out the unsecured debt, and they keep their assets. If they’ve got too much equity in their assets, then we look at a Chapter 13 to save those assets. Other good reasons to file a Chapter 13 would be that you’ve got tax problems. It doesn’t matter if it’s real estate taxes or income taxes, we can resolve those issues, and if you’re behind on a vehicle or it’s even been repossessed, as long as it hasn’t been sold, I can file Chapter 13 and get that vehicle back for people.
If you have any concerns about bankruptcy, our experienced Jamestown bankruptcy attorneys can help alleviate your stress and assuage your doubts. Contact Humble Law Offices to schedule a free, confidential consultation.