If your debt has become suffocating, bankruptcy may prove your best option. While electing to declare bankruptcy can provide you the freedom from debt that you so eagerly seek, doing so also has a major impact on your credit rating and, as a result, your future financial options. To ensure that bankruptcy is the right choice for you, acquire the information you need to move effectively through the bankruptcy process, query a lawyer about the topic prior to selecting your council or determining once and for all if bankruptcy is for you.
How Much Do You Charge?
If you are considering bankruptcy, you likely aren't flush with cash. This cash-strapped status will likely make you eager to know how much your lawyer fees will set you back. Ask this question first to ensure that the lawyer you have selected is one that you can afford.
What Chapter of Bankruptcy Should I File?
When filing bankruptcy, you have three options: Chapter 7, in which you liquidate your property; Chapter 11, in which you restructure your finances; and Chapter 13, in which you set up a plan for debt repayment. The type of bankruptcy that is best for you depends upon how dire your financial situation is. Your lawyer can review your financial records and tell you which option he would recommend for your specific situation.
What Property Will I Get to Keep?
The property that you must give up when filing bankruptcy depends largely upon the type of bankruptcy you file, with individuals who file Chapter 7 bankruptcy having to liquidate substantially more than those who elect to file Chapter 13. Property exemptions from Chapter 7 liquidation also vary by state. Before you make your final decision, get some specifics as to what you will have to give up if you follow through with your bankruptcy plans.
What Will My Repayment Requirement Be?
The exact amount that you have to repay, if you have to repay anything at all, will be determined in court after a careful evaluation of your financial situation. However, your lawyer can give you a probable range by perusing your credit report and considering the type of bankruptcy that you intend to file, allowing you to better prepare for repayment.
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