Is Filing For Bankruptcy The Only Hope To Becoming Free of Debt?

By: Keith Lee

Some people may, under certain unforeseen circumstances, find that they are incapable of paying off their debts either wholly or partially and thus would be looking for a way out of their financial mess, and one of the methods available under such circumstances would be filing bankruptcy which will ease the pressure of being under too much of debt. So, before you go out and decide to do so, there are certain things to take into consideration about how to go about doing it. First off, is the need to ensure that there is in fact no other solution in sight because once you are bankrupt, it will reflect on your credit file for many years (as many as ten) to come?

In case of doubt, it would be worth considering other options as well so that you can be sure that filing bankruptcy is your only last hope to becoming free of debt. This is very important because having negative credit ratings can severely impact your finances in the future, which means needing to take a few steps before coming to this important decision.

When it comes to filing for bankruptcy these days, because the laws have become stricter and the requirements more pronounced it is much more difficult to get it approved successfully. As such, it becomes critical that an individual who is looking to file for bankruptcy protection seek a professional counselor who has the legal expertise and experience required to make sure that the filings will be in order and the rulings will properly favor his or her client. To do otherwise could place a positive result in critical jeopardy and no one would wise to see such a negative ruling occur.

What Can Your Lawyer Do For You?

Once you have a lawyer or attorney in mind, you will next realize that in order to properly go about learning how to file for bankruptcy, you should consult with your lawyer about your case and find out the best chapter under which to proceed. And, you should learn about what it is going to cost you as the fees for different chapters will vary and so too will attorney's fees for which you should consider paying a flat fee rather than paying the lawyer according to the amount of debt you owe.

Things To Consider

Today, with so much business being conducted on credit, having an adverse credit rating will not do you any good, which means being absolutely sure that filing bankruptcy is your only avenue for salvation from mounting debts.

Another useful tip is that you need to research well all of the available options before you file for bankruptcy, and though you may be thinking of doing it without hiring a lawyer, the best way of going about it may indeed warrant hiring a bankruptcy attorney or lawyer, and even then you need to research different lawyers before selecting a particular individual or firm.

Research, Reserach and Research More On The Impact

Other salient points worth considering are to research well, understanding that even rich people need to file for bankruptcy sometimes, including all your debts that are eligible, know about automatic stay and its effects on creditors, your landlord and employer may not be told about your bankruptcy, and remember also to keep your bankruptcy records for at least twelve months after a successful filing.

Bankruptcy
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