VIDEO: There’s Nothing Shameful About Filing for Bankruptcy
Attorney Michael Siegel of Siegel & Siegel in Manhattan says there is nothing immoral about filing for bankruptcy. It’s a federal law and is provided for in the U.S. Constitution.
“A person should get a full understanding of their assets, their debt, their income and their expenses — and then they’ll be in a position to call an attorney to explain their situation,” Siegel says.
Individual states decide which assets are exempt from bankruptcy, according to Siegel. The most-used options are Chapter 7 – a liquidation of assets and a forgiveness of your debt — and Chapter 13 — a personal repayment plan.
You can file for bankruptcy once every eight years, but you cannot discharge child support, alimony, student debt and taxes. “My advice is that people should consider this to be a one-time event,” Siegel says.
If you find yourself over your head in debt, you can look up a local bankruptcy attorney on Lawyers.com who will help you.