Is your financial situation bad and you think the only solution is bankruptcy? Fear not, you are in good company. Many people have been in the same situation as you. So have a look through the contents of this article to see what you should know about bankruptcy.
Instead of jumping into a bankruptcy filing, be sure your situation requires it. You have better options. For example, you could try credit counseling. Bankruptcy stays on your credit for a whole decade, so if there are less drastic options that will solve your credit problems, it is in your best interest to make use of them.
When you do meet with a lawyer make sure that they answer all of your questions and that they do not charge you for consultation alone. Almost all lawyers will give a free consultation, so meet with more than one before making a decision on whom to hire. Choose an attorney who is experienced, educated and well-versed in bankruptcy laws. You can think about your decision before making a commitment. Take your time, and schedule consultations with more than one lawyer.
Protect your house. Bankruptcy filings do not necessarily mean that you have to lose your house. There are mitigating factors, such as lose of value, or multiple mortgages. Check to see if you pass the requirements necessary to file for a homestead exemption.
Ensure that you bankruptcy is your best choice. You may well be able to regain control over your debts by consolidating them. Filing a claim can take a long time and cause much stress. It will also make it tough for you to secure credit after your filing is complete. Therefore, before you file for bankruptcy you need to consider all of your alternatives.
Nobody wants to file for bankruptcy, but in some cases the situation becomes necessary. Now that you’ve come to the end of this piece, you have some ideas about how the process works. If you can understand the path that others have followed, your journey will be more successful.
