If you've lost your job, it can be hard to imagine how you're going to make ends meet. You know that there are ways to eliminate debt. However, without an income, you can't figure out how you'll make it work. Your mortgage, car payment and immediate needs come first. So what will you do about the other expenses you have?
There are many people who have gone through situations just like yours, so don't think you're alone. One option may be bankruptcy, which could allow you to discharge your debts. In some cases, you may be able to maintain certain loans or continue paying some debts so that you don't have to risk your home or primary vehicles. Thanks to the exemptions that are offered, you could be surprised at how much you can keep despite having to liquidate some of your assets in a Chapter 7 bankruptcy.
Are you required to sell your assets in bankruptcy?
No, and that's something important to talk about with your attorney. There are multiple kinds of bankruptcy, and some are better for certain situations than others. For example, if you have a lot of unsecured debt and no income, a Chapter 7 bankruptcy would allow you to ask for those debts to be discharged. On the other hand, if you still have a steady income, then a Chapter 13 bankruptcy would allow you to make a dent in your debts through a three-to-five-year repayment plan.
It's best to speak with your attorney about the options, because what you choose to do will depend on your individual situation.