When the piles of debt seem to crush you, the thought of bankruptcy likely crosses your mind as an alternative to the position you are in. A bankruptcy attorney can provide the assistance you need to navigate this difficult financial time. Here’s what you need to know about bankruptcy.
Explore Options
Bankruptcy is not the only option available to you if you are pressured by debt and creditors. A good attorney should help you navigate all available options not just bankruptcy. Debt reduction and working with current creditors may be better solutions for you than bankruptcy. There are pros and cons with each one and are worth discussing with your attorney.
Proper Filing
Not hiring an attorney experienced in bankruptcy could lead to you not qualifying based on improper filing with the court. With the different types of bankruptcy available, you need to choose the right one for your situation. An attorney knows what to file and when. They can help you gather your financial information and file the documents with the courts.
Bankruptcy Types
Not all bankruptcy types wipe out all debt. Not everyone qualifies for a Chapter 7 which erases all debts by selling available assets. Sometimes a person can keep their property under a Chapter 7. There are income restrictions on Chapter 7 bankruptcy filings. A Chapter 13 may be another alternative which creates a structured repayment plan allowing you to pay over a period of time.
Other Considerations
Your income and assets are the main things used to determine the best bankruptcy type to file. In addition, a bankruptcy can affect your credit for up to 10 years by staying on your credit report. With all your credit history wiped out with a bankruptcy, your credit rating will likely drop significantly making it difficult to get a loan or credit card for a while.
When looking for ways to have financial freedom, a bankruptcy attorney may have the answers you need to eliminate your debt and get back on track. Many offer a free consultation.
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