The Information Your Bankruptcy Attorney Should Give You

If you've scheduled a meeting with a bankruptcy attorney, you won't want to leave his or her office until you have a good understanding of some facts. Moving into filing Chapter 7 or Chapter 13 is not a path to be taken lightly. The fact that you've decided to hire a lawyer at all is a sign that you understand this. Still, just meeting with a lawyer doesn't mean you have to go through with it. In fact, this is a good opportunity for you to get the information you need to determine whether or not this is a good idea. Here are some of the things you need to know.

Options

As any reputable bankruptcy attorney can attest, filing for debt discharge isn't in everyone's best interests. You need to find out if it is the right option for you before you proceed. Just wishing you had some more money is probably not a good reason to file. Feeling as though you will spend the rest of your life paying down your credit card debt may be. Being entangled in the threat of foreclosure and lawsuits is almost certainly reason enough. But this is information you'll need to discuss with a lawyer.

Benefits

Obviously, the big benefit to filing for debt discharge is that you won't have these debts hanging over your head any longer. Unfortunately, not all forms of filing will actually present you with that result. Often, you will still have to pay back at least some of your debt, although you'll have new means of doing so. Do you want to take this kind of hit to your credit just to have a new payment plan? Maybe, if the alternative is having your house taken away. In any event, discuss with your bankruptcy attorney the specific benefits of filing. You may decide it's not worth it. On the other hand, you may finally understand why it's the right choice.

Drawbacks

The biggest drawback to filing for Chapter 7 or Chapter 13 is that your credit is going to take a big hit. This is unavoidable and it can put you in a tough spot for the next several years as it pertains to getting a loan or a line of credit. Of course, having defaults and repossessions on your report is no better, so it may not be much of a drawback in your situation. Talk to your bankruptcy attorney about the specific negative effects you'll see. You need this information to make a good decision. Don't bother with a lawyer who sees only sunshine and rainbows. You have some tough choices to make and you deserve the ability to do it with open eyes.