Anyone can fall on hard times. You may have experienced medical issues, job loss, or property foreclosure that has devastated your finances. Unfortunately, things may get to the point where it may be best to file for bankruptcy. If you've reached this juncture, here are some questions to ask your bankruptcy lawyer.

1. How Should I File?

When you decide to file for bankruptcy, you have two options. Chapter 7 is known as liquidation bankruptcy because you have to sell off your assets to pay your debts. Chapter 13, on the other hand, is referred to as a reorganization type of bankruptcy since you will use a repayment plan to pay off your debts over time. Chapter 13 may be the best option if you have a regular income and want to keep your assets.

2. How Long Is the Process?

The time your bankruptcy process will take depends on whether you file under Chapter 7 or 13. Under Chapter 7, it can take three to six months from the initial filing to closing, as you must take the time to liquidate those assets. Since Chapter 13 involves a repayment plan, you usually have three to five years to pay off those debts and receive a discharge. A skilled bankruptcy lawyer will be able to walk you through either process.

3. What Are the Risks?

Bankruptcy may result in a loss of assets to pay off the debt. It can also stay on your credit report for as long as seven years. In some cases, you may lose your passport, which can affect your ability to travel internationally. Plus, if you plan to own a home again, it may be difficult to do so after declaring bankruptcy unless you can pay for it in cash.

4. Why Do People File?

According to LegalJobs, a popular job-seeking platform for legal professionals, more than 40% of U.S. survey respondents are in debt due to medical bills. In addition to medical expenses, some people fall into bankruptcy due to a loss of a job or problems paying off their mortgage. When people develop addictions such as gambling or excessive shopping, they may also end up spending beyond their means, resulting in heavy debt.

Dealing with such financial straits can be hard for anyone. However, a bankruptcy filing can help you set things straight and pay off your debts. Don't take this situation lightly, and make sure you have the right legal representation to help you through this situation. For an experienced bankruptcy lawyer, call the law offices of Christman & Fascetta LLC today.