For those overwhelmed by debt, declaring bankruptcy can sometimes be the smartest way out of a financial crisis.
Before filing for bankruptcy, it is important to understand that not all bankruptcy declarations are created equal. There is the declaration for personal bankruptcy (Chapter 7 or Chapter 13) versus business (Chapter 11). Some entail the selling off properties and assets to repay creditors while in others these are considered ‘exempt’ and therefore safe. Depending on how and when it is orchestrated, a bankruptcy declaration can be a great move to rebuild and start afresh; However, if mismanaged, it can hurt your reputation and credit score for years even as you are forced to liquidate hard earned assets, with little or no control of the proceedings.
It is also important to remember that bankruptcy law is always being amended; our legislators are always trying to prevent misuse by blocking old loopholes but in the process creating new ones. This makes the actual bankruptcy process unfortunately lengthy and time consuming; in some ways almost as emotionally draining as the decision to file itself. At times like this, it is always a good idea to have someone knowledgeable to help navigate legal waters especially in matters of such great financial impact. It is important to consult an experienced bankruptcy attorney to understand the difference between Chapter 7 Bankruptcy, Chapter 11 Bankruptcy and Chapter 13 Bankruptcy and evaluate which option is best for your individual circumstances.
At The Law Office of Rowena N. Nelson, the leading bankruptcy law firm in Washington DC Metropolitan area including Maryland and Northern Virginia, we have helped multiple client’s file for bankruptcy using methods that help them best optimize their financial holdings even as we negotiate the most flexible terms for repayment. But most of all, we pride ourselves on the many more that we have helped avoid bankruptcy for thanks to the creative interventions of our team of bankruptcy lawyers servicing clients in Maryland, DC and Northern Virginia that include mediating with creditors and debt collectors on your behalf. Book a free bankruptcy consultation with our experienced bankruptcy attorney.