Do you have debts piling up from your mortgage, medical expenses, or loans? If you’ve found yourself in debt, you’re not alone. Millions of Americans struggle with this issue each year. However, there is relief for those who have experienced significant financial hardship as the result of debt, and it comes in the form of declaring bankruptcy.
There are two types of personal bankruptcy in the United States: Chapter 7 and Chapter 13 bankruptcy. The main difference between Chapter 7 and 13 bankruptcy is that the former is liquidation and the latter is a payment plan. Chapter 7, however, could cause you to lose your home, vehicles, and other assets; Chapter 13 may allow you to retain those items and pay off your debt in more manageable installments. When choosing a bankruptcy attorney to aid you in this process, he or she should be able to make this distinction clear for you.
A good lawyer will also help you understand all stages of your filing and notify you of how you are affected before, during, and after you declare bankruptcy. Here’s what you should expect when you find the best bankruptcy lawyer for your case:
The bankruptcy process can be long and confusing, so you’ll need guidance every step of the way. The best bankruptcy lawyer for your situation should be able to answer all of your questions and reassure you when making decisions. He or she should also notify you of the risks you incur during this process.
During the Case…
A bankruptcy filing can take as much as six months to complete, sometimes longer. As such, the best bankruptcy lawyer for you should keep you informed every step of the way regarding the progress of your filing. He or she should also give advice on how to limit spending and make the process easier on you and your family.
After You Have Claimed Bankruptcy…
Many people who claim bankruptcy and win their case may experience a sense of relief. However, there are still issues you will encounter years after you file for Chapter 7 or Chapter 13. After you file for bankruptcy, a Chapter 7 filing can show up on your credit report for the next ten years. Your credit score may also lower significantly. Fortunately, many lawyers will help you develop a plan to rebuild your credit over time.
Remember: bankruptcy cases can vary depending upon personal situation, so it’s best to discuss your options in person with a lawyer rather than relying solely on the internet for advice. If you have questions, speak to a lawyer as soon as possible. If you have other concerns or comments, leave them below. More like this article: www.ridingslawfirm.com