Filing for bankruptcy is not a decision that people take lightly. It is typically one of the last resorts for people who are struggling financially, but it is not quite as daunting as you may feel. Filing for bankruptcy can be a fresh start for people, though. It can be the financial reboot that they need and offer a way to start over again with a better understanding of your finances. If you are considering filing for bankruptcy, you need to contact a bankruptcy lawyer, like one from The Law Offices of Ronald I. Chorches, as soon as possible to help look over your case. He or she will be able to guide you every step of the way so that you can make the right decision for you and your family.
You May Need to Give Away Many of Your Assets
Depending on what chapter of bankruptcy you file for, you may need to sell many of your assets. This would include any valuables that you have, and potentially even your home. Some things may be exempt from selling, but you will have to sell a significant amount of your possessions to be able to file for bankruptcy. Your items will essentially be sold in order to help pay back creditors.
Your Credit Score May Be Affected
It is true that it will hurt your credit in the short term to file for bankruptcy. The good news is that if you were unable to keep up with your bills, it may not affect your credit score as much as you think. If you were already having difficulties paying your bills on time, your credit score may have already been affected. Bankruptcy will typically affect your credit score for around 5 years. Then, you can rebuild your credit as you begin to make your financial situation better.
You Will Need to Go Through Debtor Education Classes
If you file for Chapter 7 bankruptcy in the United States, you will need to go through debtor education. This is in hopes that you will never have to be in the same situation that made you file for bankruptcy in the first place. The classes can be beneficial for people to learn how to better deal with budgeting, their personal finances, and ensure they do not find themselves in a bad situation again. These classes are meant to prepare the person filing for the future and help them learn about what mistakes they may have made to file for bankruptcy in the first place.
Contact a Bankruptcy Lawyer Today
If you or someone you know is having financial difficulties, it cannot hurt to set up a consultation with a lawyer who specializes in bankruptcy to determine if filing for bankruptcy is the right decision to move forward with your life. A lawyer will go over each type of bankruptcy to figure out what is the best chapter for you, and help you throughout every step of the process. Do not hesitate. Declaring bankruptcy can be just what you need to let go of your debts and begin a new financial trajectory for your life.