If you’re overwhelmed by debt and you want to clear your credit reports and start anew, you may have been considering bankruptcy as a means of getting the clean slate that you’re looking for. It is important to get the best advice possible when considering following through with this method of clearing up your debts because it can be a long time before you are able to recover, and lending institutions will be concerned about the financial risk that you represent by filing. Here are some tips that you can use before considering filing.
The most important advice you can look forward to is to talk to an attorney that specializes in bankruptcy to answer all of your questions. There are several different types of bankruptcy filings. The best tip is to know that some are all inclusive (except for student loans and some medical bills under certain situations), and some only include certain debts. It is important to receive a consultation by someone qualified to explain to you what option would be best for your particular debt situation.
Before looking toward bankruptcy, some good advice is to look for other services. As a special tip, there are some services that are similar to bankruptcy in the way that they work, and you can consider those as options without having to go through a bankruptcy process. With other methods such as debt management or credit counseling, you can look forward to paying back your debts without being able to acquire any new or current revolving credit accounts to help you build your credit while you are in repayment. This can be difficult if you are looking to be financed before your first 2 – 3 years of working with this payment plan.
If you are sure that bankruptcy is the right way to go, my advice is to choose an attorney that you are comfortable working with. It is easy to be pressured into using an attorney that you are not completely satisfied with out of the desire to clear your debt. A great tip is not to settle on the first lawyer that you speak to. Talk to 3 – 5 people and choose the lawyer that answers your questions and best listens to your needs.
Another great tip is to use a bankruptcy attorney that someone you know has done business with is a good way to assess how good that lawyer is. As a matter of advice, you will have the first hand experience of someone’s particular situation to guide you, and will have the ability to gauge how well you are being treated by the person’s experience. While this does not always work, the majority of times, individuals can be consistent in the way they treat others.
Personal Bankruptcy – When You Should Consider Filing
During the 1980’s and 1990’s, personal bankruptcy was rising as the preferred method of clearing debts for every individual, regardless of the amount of debt they had. This caused a tremendous problem for many individuals who suffered from the inability to qualify for any credit for many years as a result of this filing. If you are looking to qualify for any loans or revolving credit at any time in the near future, this choice of debt management isn’t best for you.
Many individuals do not have a high amount of debt when they file for personal bankruptcy, and inaccurate consultations due to attorneys who are more greedy than concerned about their client’s needs file these cases without informing their clients about what other options are available for them to take. Filing is a huge step, and you can look forward to 2 – 3 years without the ability to apply for credit as lenders see these filings as high risk on their part.
You should only consider filing for personal bankruptcy if you have larger debt than the average individual. Most debts can be settled or paid with payment plans in a minimal amount of time, and many debts if they are 2 years old or older can be deleted from your credit profile without you having to pay a dime toward that collection company. You can find relief without having to file for personal bankruptcy if your debt is lower than $100,000.
If you are an investor in real estate and have several foreclosures on your credit as a result of losing your homes, suffer from exorbitant tax liens, several repossessions or other high cost debts that you cannot pay off on your own, then bankruptcy may be the next logical step for you to take to recover your own credit. Many people have acquired 3 or more mortgages on their credit, and with the problems in the mortgage industry have lost their homes or have suffered other misfortunes that will not allow them to pay these mortgages back. Personal bankruptcy could be right for you.
Speaking to a specialist will help you to determine if personal bankruptcy is the right choice for you. Your specific debts and future goals will need to be assessed in order to determine if filing will help you to recover quickly. It can take time to recover and begin establishing credit again after you have filed, so speak to an attorney or other expert in filing to see what your next steps should be.
How to Select the Right Bankruptcy Lawyers
When debts become out of hand, individuals look for a way to manage their debts quickly to provide relief and to start anew. People have learned to look toward this debt recovery option as a means to recover from those debts and get a new start to their finances. While it may seem like the best way to handle many issues, this option should be used as a very last resort when it comes to looking for debt recovery.
Many people suffering from foreclosures, tax liens and other detrimental blemishes to their credit seek out this option for recovery, but there are others who have very little debt that consider this option out of not knowing what to do. A good bankruptcy lawyer should counsel you on what your options are before rushing into signing you up for their service.
The bankruptcy lawyer that you choose should be knowledgeable, but most importantly, he or she should be willing to listen to what your needs are. Listening to your needs will help to provide you with the best solutions possible for debt recovery. Every person’s situation does not call for bankruptcy, and unfortunately, the emotional strain of debt can keep us from having a clear picture of what we really need.
Specialists like this should be able to properly assess your debt and your specific financial goals to provide the best kind of solutions. If you do not have a good feeling about the particular attorney that you are speaking to, chances are, he or she is not the right attorney for you. You should feel comfortable with their amount of knowledge, their willingness to listen to you, and you should not feel overwhelmed when you meet with him or her.
Prices for bankruptcy services will vary by lawyer, but you can use this pricing to also narrow down your choice of attorney, based upon your particular budget. You can expect a lower quality of service for a lower amount of money paid, and that is typically the rule with most expertise at a low cost. You get what you pay for. Most attorneys will do their best to work with you, but you should not seek out a service if you are not financially prepared to do so. Reputable attorneys will do their best to work with you, be sure to let them know what your financial situation is like and you may be able to do a payment plan or create other options that they will work with you on.