Bankruptcy filings are increasing across the United States. Americans have suffered for the past few years. They lost their jobs, foreclosed on their homes, built up more debt and now many of them are seeking the guidance of a bankruptcy attorney in their area.
Without knowing what to expect some people fall victim to bankruptcy attorneys pushing for bankruptcy even if it is not the best solution for the individual. Assuming you contact them with advance notice, they should explore all possible options before concluding that filing for bankruptcy is best.
Chapter 7 and Chapter 13 are very common forms of bankruptcy. Chapter 7 will liquidate everything you have to pay off debts. This is often a last resort. Chapter 13 bankruptcy applies a 3-5 year repayment plan to your debt. Once you have successfully completed the payment, you will be released from anything remaining. To qualify for chapter 13, you must have a reliable income.
Your situation will drastically affect which type of bankruptcy makes the most sense to you. Someone with significant assets and a reliable job would probably be better off with a chapter 13 filing. If your debt is all unsecured like credit card debt then chapter 7 would be a better choice for you.
There are also some situations where bankruptcy makes no sense at all. When your debt consists mostly of child support, student loans or taxes owed combined with a trivial amount of credit card debt, then bankruptcy may not make any sense at all. This is because some forms of debt such as student loans are not eligible to be issued through bankruptcy.
A qualified attorney would not suggest bankruptcy in this situation. They will also suggest alternatives such as debt settlement, modifying your loan or negotiating credit card debt payments. It is possible that this alternative may prevent bankruptcy from landing on your credit report.
Many attorneys will offer a free consultation. During this time you can get an idea of how thoroughly the attorney will handle your case. This is a free way to determine if you have found the best attorney to protect your financial reputation.
Trusting your attorney is important to a good working relationship. See several attorneys until you find one you are comfortable with whether or not you should file for bankruptcy.