Facts a Bankruptcy Lawyer Will Explain

In spite of what you may think or have been told about filing, a bankruptcy lawyer knows that there is no stigma or judgment that goes with filing. Laws are made to help individuals who are struggling with debt.

There are numerous complications that can land an individual or family in a situation where a bankruptcy lawyer would suggest filing for Chapter 7 or Chapter 13, and a free consultation should be available without commitment. Today's economy and its recession are contributing to job loss, layoffs, and sky rocketing unemployment. These situations lead to honest, hardworking people leaning on credit to pull through. A bankruptcy lawyer may talk to many who think that filing means admitting irresponsibility and dishonesty, but the truth is that these laws were really created for unavoidable situations such as those that are a product of recession.

The two types of aforementioned bankruptcy are two of several options that are solely meant for individuals rather than business owners. When filing for Chapter 7 bankruptcy, which is the most common type, an attorney will help you to gather your debts and obligations and he will negotiate on your behalf with your creditors. You may be asked to pay what you can by liquidating your assets. Your debts will be wiped clean, and you will be free to begin rebuilding your credit. You will not be able to instantly extend any credit, but with dedication, budgeting, and honesty, you will rebuild the credit that you deserve.

Chapter 13 works a bit differently. In this situation, a bankruptcy lawyer negotiates or settles with your creditors. He may be able to, for example, convince a creditor to accept an eight thousand dollar payment for a twenty thousand dollar debt. All of your debts will be settled and consolidated into one smaller, more manageable payment. Be sure to ask your attorney about how this effects your taxes and what instances the written off amounts will be counted as income on your part.

If you are beginning the think about this as an option for your financial situation, then it is wise to contact a bankruptcy lawyer sooner than later. Making contact does not mean that you will be making a commitment. In fact, if an attorney sees a better option for you, he will lead you through that option instead. A consultation should be free, and taking this first step toward your financial freedom will immediately begin to set your mind at ease.