This article is by guest blogger Dania S. Fernandez, Esq., a smart & sassy bankruptcy lawyer.

Are you up past your eyeballs in debt? Have you tried absolutely EVERYTHING and nothing helps? Are you considering bankruptcy as a last resort and a way to start over?

I totally get it. As the current economy continues to affect us, debt has wormed its way into many of our homes and businesses.

And let’s face it – we aren’t exactly sure when the economic situation will steer in the right direction. But we can try and take the reigns to lead ourselves into our own financial recovery.

Whether its the loss of a job, the loss of a marriage, or even worse, loss of confidence, debt is debt and you can’t ignore it. You can either drown in it or take action.

Agatha K got down and dirty with her $30,000 of debt and found a unique way to pay it off. And I know many other people who have had success with things like debt counseling and debt consolidation.

But what if you are ABSOLUTELY at the end of your rope and cannot dig yourself out, no matter how hard you try? Have you ever considered filing for bankruptcy?

As an attorney in a multi-practice law firm, I represent clients who are going through both happy and not so happy situations, such as buying their dream home or filing for bankruptcy.

What I have learned is that filing for bankruptcy has helped many of my clients gain control of their financial situation. And, even more importantly, it has also helped save the financial foundations they’ve worked so hard to build.

Here are the basics on the two of the most common types of bankruptcy:

CHAPTER 7 BANKRUPTCY
This is also known a ‘Straight Bankruptcy’ and is the simplest and quickest bankruptcy available. A Chapter 7 is typically filed by people who have little or no income left after paying their basic monthly living expenses like food, rent, utilities or car payments.

If you fall under this category, a Chapter 7 bankruptcy may wipe out most of your unsecured debts like credit cards, medical bills and utility bills, to name a few.

But secured debts cannot be wiped out by a Chapter 7. These are physical items that can be repossessed if you don’t pay the bill, such as cars and furniture.

If you file a Chapter 7, your secured debts can be handed back to the debt company, or you can request a reaffirmation agreement that allows you to keep the item and continue making payments.

CHAPTER 13 BANKRUPTCY
This is a debt repayment plan and is also called a ‘Wage Earner’s Plan’. A person must be employed to be granted a Chapter 13 bankruptcy so they can make regular payments to the bankruptcy court. The payments they make to the court are then distributed among their creditors.

Chapter 13 bankruptcy is popular among consumers that are facing foreclosure because missed mortgage payments and legal fees can be written into the payment plan in order to stop the foreclosure proceedings.

If you are in the early stages of considering bankruptcy, I know this all may sound complicated and overwhelming. And remember that choosing this option has its down sides too, so you have to consider that carefully.

But if you are looking to bankruptcy as a last resort legal help can guide you to greener financial pastures.

Financial independence is what we all strive for. The key is to educate yourself and make the choice for a financially fit lifestyle!

For over 10 years Dania S. Fernandez, Esq., has been helping families and businesses break free from debt. Her legal practice specializes in Bankruptcy, Real Estate Law and Foreclosure defense. For more information go to www.DaniaFernandez.com.

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