If you have been bitten by the right snake, you file bankruptcy. There are consequences, however, that you need to understand. Get counsel from someone who represents the person—not the title company and not the real estate agent. You need to customize the solution to fit your situation. Bankruptcy is a powerful tool, but it is not for every job.
Bankruptcies come in different chapter numbers, some luckier than others, but luck is irrelevant if that chapter is the right fit for you. A Chapter 7 Bankruptcy is a liquidation where your property goes to a trustee. A Chapter 13 Bankruptcy is a long term plan that separates your living expenses from your disposable income, and the disposable income goes toward your debts. A Chapter 11 Bankruptcy is for companies where you do not have a trustee; instead, you deal with a group of creditors.
Bankruptcy is an individual issue. Good counsel will look at the equity involved and look at what else is going on, like your credit card situation. Bankruptcy is just a tool in my toolbox, and sometimes it is the best thing.
Comments