Chapter 7 Bankruptcy Lawyer
Anyone who wants to apply for bankruptcy, must be properly informed and prepared with what to expect. Bankruptcy isn’t as simple as people may imagine, where once you file for this status all of your financial worries go away. Not every bankruptcy chapter works the same for each individual. In fact, some chapters may not even be suitable for certain situations, and can make matters worse. The decisions to file for bankruptcy isn’t usually a spur of the moment thing, and careful consideration must be taken.
Those who truly want to do what is in their best interest may want to get legal advice before sending in their bankruptcy application. The process of filing can be complicated, and there are a few things to consider before making the leap into bankruptcy:
#1 Be Sure You Need to File
For some people, what is needed isn’t filing for bankruptcy, but re-evaluating current spending habits and making some drastic changes. Once a person has their financial information laid out in front of them, they may realize there are other ways to make it work. Sometimes we don’t realize just how much money is spent on unnecessary expenses such as subscriptions, memberships, eating out, over-the-top vacations, and entertainment. Perhaps the first step to figuring out whether you need to file for bankruptcy is to consult with a financial advisor.
#2 Do Research About Debt Forgiveness
Contrary to popular belief, bankruptcy doesn’t always forgive the entirety of your debts. For example, taxes, student loans, and late child support payments are not likely to be eradicated. A more strategic approach may be to contact these lenders and family court to request assistance due to financial hardships. Credit card companies and other loan agencies may prefer to get some amount of money from you even if it’s less, compared to nothing at all each month. So, they may be willing to negotiate with you by decreasing your required monthly payments or interest rate.
#3 Talk to Your Co-Signers
If you have convinced others to cosign for you in the past, they may be impacted by your bankruptcy filing. A co-signer may end up getting stuck with having to pay the full outstanding balance after you file for bankruptcy. If you care about this person who signed onto a loan to support you, then you may want to factor them into your decision. Talk with a lawyer who is experienced in bankruptcy matters to figure how whether your co-signers will be left to cover the bill.
#4 Assess How You Will Be Affected
Depending on a person’s financial circumstances, filing for bankruptcy may mean applying for a chapter that sells off your assets in order to satisfy debts. If this is true for your situation, decide whether you are willing to part ways from things like your vehicle, furniture, and other valuable items. Be mindful of how filing for bankruptcy may impact your life, and whether this is something you can handle and accept.
Source: Chapter 7 Bankruptcy Lawyer Bloomington, IL, Pioletti & Pioletti