How to File for Bankruptcy

2019/02/25

Bankruptcy is a difficult situation to deal with for anyone. However, under federal laws, a person who is in a bad debt situation can file for bankruptcy and start with his finances all over again. After declaring bankruptcy, the amount of debt owned is reduced and the time period over which it needs to be paid is extended.How to File for Bankruptcy

This might sound simple but it is important that a bankruptcy attorney be consulted before taking any legal step. Lawyers who help deal with bankruptcy normally practice using two main procedures.

One is liquidation that falls under Chapter 7 and the second is under Chapters 9, 11, 12 and 13 that involves payment of debt in future. The second procedure also takes care of improving the financial situation of the person filing for bankruptcy.

The lawyers are adept at fighting off the creditors who can further make life miserable for people already facing bankruptcy. Also they can help you keep your property including house, vehicles and other expensive items.

A bankruptcy attorney is bound by law and his profession to help you achieve stability in your finances by offering you correct legal advice. A good and experienced lawyer will be able to handle even the most difficult of bankruptcy cases.

If you own a home, the lawyer’s main concern would be forestalling the proceedings to take over the home by creditors. This is especially useful in case you have fallen behind payments on your mortgage. The reason can amount to unforeseen emergency expenses.

The lawyer will file for bankruptcy under Chapter 7 and get temporary relief from the foreclosure. Chapter 13 is what the lawyer will file for in the situation of the home owners wanting to keep their property in their name.

Do not take impulsive decisions when deciding on an attorney. The lawyer should make you comfortable enough for you to share your problem. Also gauge the attorney by checking on the years of practice and the cases that they specialize in.

Find out if they would be personally handling the case or would later ask a junior or partner to take over. Once you have decided on an attorney discuss fees and payment. Many bankruptcy attorneys do not charge the initial consultation fees.

However, let not this be the deciding factor. This is a matter of grave concern and your future rests on your choice of a bankruptcy attorney.

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