Will I Lose Control Over My Money in Bankruptcy?

roll of money with lock around itIf you are living paycheck to paycheck and still coming up short when it is time to pay your bills, you should consider filing for bankruptcy. Many people want to file bankruptcy only as a “last resort,” but the longer you wait the worse your financial situation may get. The majority of Chapter 7, Chapter 11, and Chapter 13 cases are the result of events that are out of the debtor’s control, such as loss of a job, divorce, or a major injury or illness. Seeking bankruptcy protection is the first step in taking control and improving your finances.

One concern many of our clients have when they are considering a personal bankruptcy is whether they will lose their financial freedom. The truth is that bankruptcy is designed to give you a fresh start with your finances. It allows you to eliminate the majority, if not all, of your debt. Without the burden of this debt, you can rebuild your credit and enjoy having a new start financially.

The fear of losing assets is another concern you may have. While the Chapter 7 process is commonly referred to as a “liquidation bankruptcy,” most Chapter 7 debtors are allowed to keep most, if not all, of their assets. In a Chapter 11 or a Chapter 13 filing, the debtor is allowed to keep all of his/her assets as long as he/she is making the payments required under the Chapter 11 or Chapter 13 plan. Wouldn’t being able to eliminate your debt while keeping your assets drastically improve your financial situation?

Please keep in mind that every bankruptcy matter is different. If you are interested in learning more about Chapter 7, Chapter 11, or Chapter 13 bankruptcy, or you have questions about how filing bankruptcy could benefit you, and you would like to schedule a no-cost consultation to discuss your options, please contact our office by completing the form on this website or calling us at (954) 280-5066.

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