Debt is an unfortunate reality for many people. Sometimes, however, that debt can become impossible to deal with. If you’ve experienced debts that cause extreme hardships, if you have debt collectors calling you, or if you are in danger of having property repossessed or foreclosed upon, you may be headed toward bankruptcy. While this can sound terrifying to some, this process could be the answer you need to eliminate or pay down your debt.
The bankruptcy process can be confusing, especially if you’re not sure where to find a bankruptcy lawyer or what to expect after you’ve filed. Although all personal bankruptcy cases are different, they do have some common ground. Here are just a few common questions that you may have about this process:
- What is the difference between Chapter 7 and 13 bankruptcy? Many people wonder about the differences between personal bankruptcy types. While it is possible to file for either for the same types of debt (mortgage, loans, medical bills, etc.), these two filings differ in terms of what they do to your debt. Chapter 7 will liquidate your assets, meaning your debt will be absolved. However, this makes it difficult to keep something like a house or vehicle, as it will likely be repossessed by the bank. Chapter 13 bankruptcy, however, will let you keep these items in most cases and will help you find a manageable way to pay your bills.
- How do I find a bankruptcy attorney? Many people wonder where to find a bankruptcy lawyer that will fit their needs, and the truth is that there’s no simple answer to this question. When searching for an attorney to represent you in your case, make sure that he or she has experience in fighting bankruptcy cases and winning them. You may also be able to receive recommendations on where to find a bankruptcy lawyer from your friends and family, especially if they, too, have been through a bankruptcy.
- What can I expect during the filing process? Filing for bankruptcy is a lengthy process. It can take around six months to complete, and it may be even longer before you experience any debt relief. During that time, you should make sure that you minimize spending in order to keep your debt low. If your bankruptcy resulted from medical bills, your insurance company may be involved in the filing, as well.
- How will filing for bankruptcy affect me in the future? Again, there is no way of knowing exactly what the future will hold in store for you after you file for bankruptcy. However, there are some things that happen to many people. One is that, especially in cases of Chapter 7 bankruptcy, your credit score will drop. As a result of your bankruptcy and low credit, you may not be eligible for additional loans, credit cards, or other services. A Chapter 7 bankruptcy filing will also appear on your credit report for the next ten years.
Have more questions about filing for bankruptcy? Be sure to speak with a lawyer. He or she will be able to give you the most relevant advice about your case. If you have any general questions or suggestions, feel free to leave a comment below. Check out this site for more.