Are you considering working with a bankruptcy attorney? When you have mounds of debt and are struggling to make your minimum monthly payments, getting on the path to financial freedom is essential. Bankruptcy is a solution. It can help you get out of debt and improve your financial situation.
While bankruptcy can be the right solution, it can be complicated. You might have numerous questions and need answers from a top bankruptcy attorney.
Check out some common questions, and get tips from an experienced bankruptcy attorney.
What is Bankruptcy?
Bankruptcy is a legal process that relieves individuals and businesses that cannot repay their debts. It involves a court-supervised restructuring or liquidation of assets to satisfy creditors’ claims. After your bankruptcy proceedings, your debts will usually be discharged, and you can start rebuilding your finances.
What are the Different Types of Bankruptcy?
There are several types of bankruptcy, but the most common for individuals are:
· Chapter 7: Often referred to as “liquidation bankruptcy,” this can involve selling non-exempt assets to pay off creditors.
· Chapter 13: A reorganization plan allows individuals to repay debts over a specific period, usually three to five years.
Will I Lose All My Property in Bankruptcy?
Not necessarily. Bankruptcy law allows for certain exemptions, meaning you can keep essential assets like your home, vehicle, and personal belongings. You will work closely with your bankruptcy attorney to determine which assets can be marked as exempt and what may need to be liquidated. In most cases, your lawyer will help you retain your critical assets.
How Does Bankruptcy Affect My Credit Score?
When you file for bankruptcy, it will initially hurt your credit score. Over time, the bankruptcy will fall off your credit report, improving your score. It’s also essential to remember that filing for bankruptcy is often a step towards rebuilding your financial life. If you don’t file for bankruptcy and keep falling deeper into debt or defaulting on your payments, that can hurt your score more than filing for bankruptcy.
Can I File for Bankruptcy Myself?
While it’s possible to file for bankruptcy without an attorney, seeking legal counsel is strongly recommended. Bankruptcy law is complex, and an experienced attorney can guide you through
the process, protect your rights, and maximize your chances of a successful outcome. If you’re unsure, you can schedule a consultation with a bankruptcy attorney to learn about the tasks they complete and the help they can provide.
How Long Does Bankruptcy Stay on My Credit Report?
Bankruptcy remains on your credit report for up to 10 years. However, the impact on your credit score typically diminishes over time. Your bankruptcy attorney can help you navigate the impact on your credit score and take the proper steps to help your score improve over time.
Will I Lose My Job If I File for Bankruptcy?
Filing for bankruptcy does not automatically result in job loss. However, if you’re summoned to court for bankruptcy proceedings, your employer may become aware of your financial situation. It is essential to work with your bankruptcy attorney to discuss all potential outcomes of filing for bankruptcy and how to address certain risks.
How Much Does Bankruptcy Cost?
The bankruptcy cost varies depending on your case’s complexity and the fees charged by your attorney. However, many bankruptcy attorneys offer affordable payment plans. They understand that you are filing for bankruptcy for a reason and will try to work with you.
Let Us Help You
If you have questions about the bankruptcy process or the pros and cons of filing, let our lawyers at the Law Offices of Alexzander C.J. Adams, P.C. help. We work for you, the people, and not institutions. Contact us for a free case evaluation or no-obligation consultation. We are dedicated to helping you overcome this minor bump and get on with your life.
