When you find yourself in a sort of financial dire straights, you may start to ask yourself if it is time to talk to a personal bankruptcy lawyer, but you may also be conflicted. For most people, filing for bankruptcy is something they would rather not do. They feel that they got into their credit mess, they should be able to get out. But often the best, most honorable way out is by working with a personal bankruptcy lawyer.
There are two main types of personal bankruptcy that cover most filers; Chapter 7 and Chapter 13. A Chapter 7 bankruptcy liquidates assets over a certain dollar amount and abolishes most unsecured debts. To qualify, a person has to make less than the median income in their state, and must not have filed another Chapter 7 bankruptcy in an least 8 years.
A Chapter 13 bankruptcy is usually the option for those who make a little more money, or who have assets they want to keep. In Chapter 13, the bankruptcy court determines how much you should be able to afford to pay creditors over a 3-5 year period, Payments are made to a bankruptcy trustee who distributes the money to creditors. Often much of the interest and fees are eliminated as the calculations are made regarding what is believed to be affordable. At least 4 years must go by between Chapter 13 bankruptcies.
Of course, these are only nutshell descriptions of these types of personal bankruptcy. To really tell whether this is the right choice for you, you should speak with a personal bankruptcy lawyer. Once you review your financial concerns, you can decide whether or not either type of bankruptcy is something you wish to pursue. If it turns out that you don’t feel that either type of bankruptcy is the right debt solution for you, the attorney can still assist you by helping you set up a debt settlement or debt consolidation plan.
If you do decide to file either type of bankruptcy, you will be granted an automatic stay when you file. This means that your bill collectors can no longer call or send mailings in an attempt to collect the debt you owe. Even this reprieve is a big relief to many borrowers, and lets them relax enough where they can think straight about what they want to do, and how they want to handle their financial dealings going forward.
Getting relief from debt can be liberating for many people, but it is important to remember that there are consequences that go with bankruptcy. The filing stays on your credit report for up to 10 years, and it will likely lower your credit score at least in the short run. Your personal bankruptcy lawyer should be able to go over the basics regarding bankruptcy’s potential impact on your credit, as well what the impact might be if you continued in your difficult financial situation.
Bankruptcy is a difficult experience to go through, but by looking at your situation honestly and taking steps to learn better financial habits, your bankruptcy filing just be that new start you need to obtain financial security. Get The Help You need at BankruptcyLawyer.com