
A little bit of financial trouble can easily snowball into something much bigger and it can seem impossible to fix. When this happens, bankruptcy might be an option. However, those who do decide to file for bankruptcy will want to make sure they don’t do it alone. It’s always a good idea to work with a lawyer, as the client can benefit from experience and advice throughout the process.
Is Bankruptcy the Right Option?
Bankruptcy is usually the first thing someone thinks about when their finances are out of control, but it’s not always the right option. In some cases, it may be possible to look into a consolidation loan to get the debt under control. If this is successful, the person can avoid bankruptcy, which will stay on their credit history for around 10 years. There may be other options as well, and it’s a good idea to exhaust those options before deciding to file for bankruptcy.
Understanding the Types of Bankruptcy
There are different types of bankruptcy, called chapters, that a person can file. This depends on their income and current situation. For most people, chapter 7 or chapter 13 would be the right type of bankruptcy. The main difference between the two is how much income and how much debt the person has, as well as the goals for bankruptcy. It is important the person learns more about the differences before filing so they can choose the right one for their situation.
Filing for Bankruptcy and Going Through the Process
Once the person has determined the right chapter to file, the next step is to file and go through the bankruptcy process. The way this is handled differs based on the bankruptcy chapter. The person will receive instructions from their lawyer for when a court hearing is needed, what the person can do while they wait, how to handle debt collectors, and a lot more. It is important the person follow all instructions for the bankruptcy to make sure it is successful.
How a Lawyer Can Help
Using a lawyer is imperative, as bankruptcy can be complicated and there is a lot that can go wrong. Those who are ready to file for bankruptcy can speak with a lawyer about their options, learn more about the process, and get answers to any questions they might have. This will help them make sure bankruptcy is the right option and help them avoid making serious mistakes during the bankruptcy process. Another benefit of working with a lawyer is that they can help deal with debt collectors before and during the bankruptcy process.
If your finances have gotten out of control and you’re not sure what to do to get help, filing for bankruptcy is one option. If this is something you are considering, speaking with a lawyer is a good idea, as they’ll be able to help you throughout the process. Take the time to contact the Kania Law firm today to learn more about your options, to get help dealing with debt collectors, and to start the bankruptcy process.