Bankruptcy Attorneys: Use Them to Improve Your Credit

If your debt is serious enough that you are considering declaring bankruptcy, it may be time to talk to a lawyer. After finding out about what is required, as well as the probable results of the case, you may decide not to do so. However, it is always nice to have all the facts available. Get to know the basics of Chapter 7 and 13 bankruptcies.

Most bankruptcy attorneys can counsel you about the best type to declare, as various circumstances come into play here. One of the most commonly declared types is Chapter 7, in which all non-exempt assets are sold so that creditors get some money. The debtor can then start over, with no debt and few assets left. This type is usually referred to as liquidation, and it is popular because it is usually done quickly, allowing the debtor to get their credit back on track as soon as possible.

If you do not want to sell everything, but would prefer to restructure your debts instead, you should talk to local bankruptcy attorneys about Chapter 13. This is another common kind, and debtors are allowed to keep their property while creating a plan to pay back creditors. If you have income and wish to pay at least some creditors, typically less than what you owe and at a lower interest rate, this may be the best route for you. Most bankruptcy attorneys simply create a repayment plan that works for both you and your creditors, which may take some time, but at least you will be able to keep your assets.

It is possible that neither of these plans works for you, in which case you and your lawyer can decide on one of the many other chapters. Offering your lawyer all the information up front will help when deciding what route you should take. Also, know that while a certain chapter may work best for you, your creditors might not accept it, so it is not always a done deal.

If you want to improve your credit and stop getting harassing calls, talking to nearby bankruptcy attorneys about your options is best. You might not qualify for any kind of chapter, in which case you can discuss other possibilities to get out of debt. Either way, the best way to start over when it comes to debt is to talk to the professionals about all of your options.