Filing a bankruptcy may be the last thing on your mind, but it is actually a solution to your problem, rather than a suicide as most people think. Throughout the years, the word bankruptcy may sound so negative to people’s ears that they would avoid it at all cost and even pretending to still be on top of all things while in truth, they are struggling and losing more than what is supposed to be.
The need for professional help
Filing a bankruptcy can be complicated in the legal sense. In fact, most average people have a hard time identifying where to begin. For this reason, the wisest step that you should take is to acquire an attorney. Since these attorneys possess educated knowledge and expertise regarding the law, you will be able to create informed decisions regarding your financial health.
Moreover, even if you already know what to do and how to file bankruptcy in a bankruptcy court, it is still important that you get legal assistance as they can help you with documents and paper works. Thankfully, there are a lot of competitive lawyers that you can choose from depending on the area where you live.
Chapter 7 Bankruptcy Law
One of the best things that you need to know about is the Chapter 7 Bankruptcy Law (also known as straight bankruptcy). It is a powerful law that will rescue you from financial debt trap. It will allow you to be free of debt within just a few months and will make sure that you get a fresh and clean slate to start again. When you successfully file a Chapter 7 Bankruptcy case, all charges against you will be temporary restrained until further solutions will be created. For example, repossessing of your auto will be halted and even utility shut-off will be restrained.
Chapter 13 Bankruptcy Law
If you are not qualified for Straight Bankruptcy, then you can opt for Chapter 13 Bankruptcy Law instead. The Chapter 13 is also known as reorganization bankruptcy. This is an option for you if you believe that you can pay your debts in less than five years. With this type of bankruptcy case, you can keep your property and lessen your loss. For example, if you were not able to pay your monthly debt for many months now, you can plea for reconsideration and file chapter 13 Bankruptcy Law to buy some time.
Filing a bankruptcy case should start from discussing this option with your lawyer. You need to provide all your financial information and make sure that you are not hiding anything since you can be penalized if the court finds out.
When your case is approved, your creditors will be notified about the bankruptcy case you filed. This will prevent them from doing any further actions against you.
Your case will be as effective as the lawyer you chose. Thus, you need to make sure that you hired the right person for the job. No matter how complicated the process, if you have the ideal lawyer working for you, then you will have more peace of mind.