In the past, filing for bankruptcy was considered the easy way out of debt and carried a social stigmata. However, in recent years, it has become a standard way of getting out of a bad situation. Due to the housing crisis, many people who bought homes and real estate responsibly found themselves in enormous amounts of debt with no way to get out of it.
Part of the reason that people with multiple homes or real estate may have found themselves struggling is the very soft market in many states. Even if someone wanted to sell a home or land to pay off a creditor, they may not have been able to find a buyer, or the prices that buyers were willing to pay were well under what was required to pay off a loan. For some people, the best, and sometimes only, solution was to file for bankruptcy.
Filing for bankruptcy is a way that people dealing with overwhelming financial obligations can get their debts eliminated or under control. However, it is necessary to choose the correct type of bankruptcy to file. Chapter 7 bankruptcy may enable someone to discharge unsecured debts. Chapter 13 bankruptcy may require a person to repay their debts, and in the event that their financial situation improves, the bankruptcy declaration can sometimes be dismissed.
A lawyer could explain the differences between these types of filings and help someone determine the best type of bankruptcy depending on the types of debt they have, their assets and their income. Additionally, a lawyer could assist a person with their filing and let them know what to expect after the bankruptcy has taken place.