Bankruptcy is usually an option of last resort. Anyone with a lot of bad debt can file for bankruptcy to get debt relief. While many people often rush to make this decision without seeking -,this is not recommended. After all,bankruptcy can have far-reaching consequences on your life. This is because employers may reject your job applications while lenders will reject your loan applications. In fact,anyone who runs a background check on you will learn about the bankruptcy and make a decision that may not favor you. Read on to learn how a lawyer can help you file bankruptcy.
There are basically two types of bankruptcies. These are liquidation and debt reorganization. These are provided for under chapter 7 and chapter 11 or 13,depending on the applicant. Your bankruptcy lawyer will explain all these bankruptcy options to you and highlight the pros and cons that come with each option. This will help you to make an informed decision. Please note that filing for chapter 7 will lead to auctioning of your property publicly. This can be extremely embarrassing for the entire family. In case of business debt,filing for bankruptcy may lead to winding up of the venture,so be sure to keep this in mind. Your bankruptcy lawyer will obviously tell you this before helping you with the paperwork.
Ways a Bankruptcy Lawyer Can Help You
For starters,a- can advise you on the pros and cons of bankruptcy. They will tell you about the different bankruptcy chapters and their requirements. The lawyer will assess your finances and pre-qualify you for any bankruptcy chapter. After you decide to go ahead with bankruptcy,your lawyer will draw up the necessary paperwork and fill out the necessary forms before filing the bankruptcy petition in court. During the proceedings,they will represent and defend you where necessary.