Being overwhelmed by debt is a terrifying experience. Coming to terms with the reality of not earning enough to pay back loans and credit cards requires adjusting to a new lifestyle. However, admitting bankruptcy empowers you to move forward. For starters, you do not need to work through the bankruptcy process alone. The laws are complicated and you need help in figuring out what type of bankruptcy to apply for. A bankruptcy attorney will guide you the process and ensure that you make the right decisions so that bankruptcy clears away the past and gives you the fresh start you need.
A good bankruptcy attorney will first explain that there are five major types of bankruptcy. Chapter 7 bankruptcy is liquidation, which means that your debts will be forgiven. You will have to give up any assets, such as cars or houses, to the bank but at the end of the process you will be cleared of your debts. While it may sound attractive, this is actually the hardest type of bankruptcy to win. New laws also have imposed greater restrictions on who can file for Chapter 7 bankruptcy. Your bankruptcy attorney will assess your financial situation to see if you are eligible for this.
Other types of bankruptcy include Chapters 9, 11, 12, and 13 reorganization. Ask your bankruptcy attorney if you are eligible for these types of bankruptcy. They involve helping to consolidate your debts and giving you more time to pay them off. While not complete liquidation, they are designed to lighten your burden while still holding you responsible for your debt.
Filing for bankruptcy involves a lot of complicated paperwork. It is necessary to complete the mandatory forms correctly and fulfill all the requirements of the process. Failing to do so can delay the bankruptcy process or put your case at risk. It is possible that the judge will deny your case, which means that bankruptcy will not be a way out of your financial situation. Having a good bankruptcy attorney makes sure that you do everything correctly in the process and improves your chances of a positive ruling.
A good bankruptcy attorney will advocate for you throughout the case so that you salvage what you can from you former life. They will help you decide what you can keep and what you have to give up. They will work with you to organize your loans so that future payments do not continue to drain you of resources. Your bankruptcy attorney is your key to finding your way back to a stable, balanced lifestyle.