Bankruptcy can provide a fresh start to your finances, but what happens after that?
The start of the new year often brings thoughts of resolutions. Whether it’s to read more books, lose a certain amount of weight, or learn a new skill or hobby, whatever the case may be, it can be hard to remain motivated to “get better” when progress seems slow.
Much like a New Year resolution, improving the control of your finances can be extremely tough. Yet, it doesn’t have to be. Here are a few ways bankruptcy could help you achieve a fresh start financially from David S. Clark, an experienced bankruptcy attorney in Opelika, Alabama.
DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.
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How Bankruptcy Could Help
From job loss, medical expenses, housing costs, or simply living beyond your means, bankruptcy is often the cause of a combination of significant life events. Unfortunately, these events are prevalent among Alabama residents, especially in the hardships that often come with a new year.
Thankfully there are tactics in place for you to gain a second chance. Perhaps the most common type of bankruptcy, known as “liquidation bankruptcy” or Chapter 7, allows you to regain control of your finances by having most of your unsecured debt, including credit card debt, medical bills, and personal loans discharged by a bankruptcy court.
Yet, before filing for Chapter 7 bankruptcy, it is crucial to know the difference between dischargeable and non-dischargeable debts.
Dischargeable debts under Chapter 7 include:
- Credit card balances (including overdue and late fees)
- Medical bills
- Personal and payday loans
- Mortgage or automobile loans for which you are unable to pay
- Utility bills
- Social Security overpayments
- Veterans’ assistance loans and overpayments
Non-dischargeable debts under Chapter 7 include:
- Child support
- Student loans
- HOA fees
- Secured debts
Ultimately, Chapter 7 bankruptcy isn’t a magic wand that removes all debts, nor is it always a simple process. From an immense amount of paperwork to complicated court discussions, there are many parts to a Chapter 7 bankruptcy case that require expertise. That’s why hiring a reputable Auburn and Opelika bankruptcy attorney like David S. Clark can be an important factor in successfully filing for Chapter 7 bankruptcy.
What’s Happens After Bankruptcy?
So, while Chapter 7 bankruptcy acts as a second chance, what happens next? As mentioned, like any New Year’s resolution, starting fresh financially will take time. Here are a few “resolutions” for 2023 that could help:
Create a budget
Budgets come in many shapes and sizes because incomes come in many shapes and sizes. So, creating a personalized budget for your needs and wants is key to building a good foundation for your finances.
Prepare for the unexpected
Risk is, unfortunately, a part of life, especially in finances. Surprises can come from an illness, job loss, disability, death, natural disasters, or even lawsuits. Setting aside money each month to prepare for the unexpected means you won’t have to break the bank when one of these surprises happens.
Auburn and Opelika Bankruptcy Attorney David S. Clark
David S. Clark is an experienced Auburn and Opelika Bankruptcy Attorney who understands the intricacies, complications, and stress of bankruptcy. If you need help navigating Chapter 7 bankruptcy, contact David S. Clark today!
DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.