Things to Know Before Declaring Bankruptcy

At Rego & Rego Law Firm, we specialize in a wide range of legal areas, including bankruptcy law. If you are thinking about declaring bankruptcy, our experienced and dedicated team is here to help. However, bankruptcy isn’t the best solution for everyone. And even if it is the right choice for you, there are a few things you should know before declaring it. The following are just some of the things to be aware of going in.

One of the most important details about bankruptcy to understand is that it can solve some problems, but can’t do everything. For example, in most cases declaring bankruptcy can stop debt collectors in their tracks, get rid of your legal obligation to pay off your debts, help you get your driver’s license back if you’ve lost it because you didn’t pay damages for an accident, and even prevent the termination of your utility services.

However, like we mentioned, there are a few things that bankruptcy can’t do. If you have a co-signor on any of your loans, they are still obliged to pay off what is owed. In addition, declaring bankruptcy won’t get rid of any debts you incur after going bankrupt, and it won’t absolve you of paying things like child support, student loans, and alimony.

In addition, there are several different types of bankruptcy, including chapter 7 and chapter 13. Chapter 7 is ideal for people who are looking for a fresh start. Declaring it will get rid of your debts, but you will also liquidate many of your assets, including property. On the other hand, chapter 13 is more of a reorganization of your debts. You get to keep your property, but you will still have to pay off most debts eventually.

If you have any questions about declaring bankruptcy, we’re here for you. Contact us today to learn more!