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New Bern Bankruptcy And Debt Relief Blog

2 possible bankruptcy Chapters that could benefit you

If you have been dealing with financial difficulties for a significant amount of time, the prospect of bankruptcy has likely crossed your mind at one point or another. The concept of bankruptcy has different connotations for different people. Some people have negative associations with the procedure because they believe it's "the easy way out" or that it's an admission of failure. In truth, bankruptcy is neither of these things: It's a process that enables those struggling financially to improve their situation.

There are different types of bankruptcy in the form of bankruptcy Chapters that are targeted toward respective situations. Before filing for bankruptcy, you should have a good idea of which bankruptcy Chapter would work best for you. For private individuals going through bankruptcy, the choice tends to lie between Chapter 7 and Chapter 13 bankruptcy. The following is an overview of these two Chapters.

Don't believe these 3 myths about Chapter 7 bankruptcy

You've wanted to consider bankruptcy to get out of debt for a while, but everything you know about it makes it feel like it would only negatively affect you. People tell you that you'll have to file with your spouse, and they claim that you are taking the easy way out if you don't pay back what you owe. Their attitudes have made you reconsider.

Before you decide not to pursue bankruptcy, take a minute to think about the truth and to dispel the myths. Here are three common myths and the facts.

Is it ethical to file for bankruptcy?

In some communities, there is a stigma associated with bankruptcy. People can be quick to assume that a bankruptcy filing is the result of poor management of money or greed. However, this is simply not the case. Many people have no option but to file for bankruptcy because of the unfortunate circumstances that they are facing. They may have accumulated significant amounts of debt because of unforeseen medical bills, a job loss or a failed investment.

If you are going through financial hardships but you are hesitant to file for bankruptcy because you believe that it is unethical, you should consider the following when evaluating the right thing to do.

What to know about small business bankruptcy and the COVID-19 pandemic

At Gillespie & Murphy, P.A., we have never seen anything quite like the coronavirus pandemic. This government enforced shutdown of non-essential businesses has caused significant financial losses for business owners - especially small business owners-and it has left people with few places to go for help. If your business is hurting, it may help you to understand a little about your options.

How can I file for Chapter 13 bankruptcy?

If you are thinking about filing for bankruptcy, it's likely that you have been dealing with debts for some time. If you have recently experienced a series of unfortunate events that have made your financial situation even worse, you may have come to the conclusion that bankruptcy is your only option.

It's important that you consider all of the options available to you before committing to bankruptcy. While bankruptcy is a great way to address serious financial situations, it's only appropriate for specific eventualities. Chapter 13 bankruptcy could be right for you if you have a stable monthly income, but you should note that it will still require a great deal of willpower and determination since you'll have to live with a strict budget for between three and five years. If you believe that you'd like to move forward by filing for Chapter 13 bankruptcy, the following are the steps that you should take.

When is bankruptcy the best possible option?

Bankruptcy is probably not something that you ever envisioned yourself partaking in. You may feel ashamed to be even considering bankruptcy because you might hold negative associations with it. It's common for people to think poorly of bankruptcy, but the truth is that it's a service that can help people out of extremely difficult times. Bankruptcy is a financial lifeline that can help families and those who have experienced a financial crisis build a new life for themselves.

You should be proud that you are considering bankruptcy because it means that you are taking positive steps forward, and attempting to find solutions to your problems. Bankruptcy is a great choice in some circumstances, but it is not always the best possible choice. That's why you should consider many different options before deciding how to move forward. The following is an overview of situations in which bankruptcy is likely to be the best possible option.

Small business bankruptcy in a time of COVID

The coronavirus pandemic has hit one sector of the economy particularly hard: small businesses. Staying afloat can be challenging even in a favorable economic climate. The COVID downturn has had a crushing impact on small business owners across the country, with many shuttering their doors permanently. For some, bankruptcy is the only way out.

Fortunately, there is a glimmer of good news amidst all the bad: Recent changes to federal bankruptcy law have made it more accessible, less expensive and less time-consuming for small businesses to reorganize through bankruptcy.

How the coronavirus stimulus bill affects consumer bankruptcy

As the global economy sinks into a coronavirus-fueled recession, millions of Americans are wondering how they will make ends meet. Unemployment rates are skyrocketing. Small businesses are going under left and right. Renters and homeowners alike are scraping to make their next payment.

The recent Coronavirus Aid, Relief and Economic Security Act (CARES Act) offers stimulus checks as a short-term infusion of cash for many desperate households. It also has important implications for consumer bankruptcy.

How do I know if bankruptcy is the right choice for me?

Those who have recently found themselves in financial struggles may wonder whether they should ride out the storm or immediately file for bankruptcy. If you have recently become unemployed, filing for bankruptcy immediately may feel like a rash decision. However, waiting too long before taking action to file could mean that you will be dealing with much more debt and complex scenarios.

If you are worried about your financial future because of a job loss or quickly rising debts, you should try to analyze your situation and reflect on whether bankruptcy is, in fact, a good decision for you. The following are some of the things that you should consider when deciding whether to file for bankruptcy.

Getting a tax return? It could help you get out of debt

You've been struggling with money for some time, and tax time seems to be when you can make up for it. You get enough money to hold you over and to help you get a few things paid off.

This year, though, you found you won't get as much as you expected. Receiving a couple thousand dollars back is great, but it's not enough to make a dent in the bills that you're behind on. You'll be back in the same position within a month.

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