What You Need to Know before Hiring a Bankruptcy Attorney

If you have been considering filing for bankruptcy, you probably understand how confusing and frustrating it is to sort fact from fiction in regards to the process. There is so much misinformation available that it is easy to come to believe something false. However, if you truly need to file, then it is important to know what exactly you are getting yourself into so you can make an appointment with a bankruptcy attorney in Suffolk. Fortunately, bankruptcy is a fairly straightforward process and with a little bit of correct information, you can make the right decision for yourself and your finances.

 

What Is Bankruptcy?

 

At its bare bones, bankruptcy is a legal alternative to being drowned in otherwise unmanageable debt. Whether you would rather erase most of your debt or simply consolidate it and fix the payments to something much more achievable, bankruptcy provides options that are unavailable under normal circumstances. A person with copious amounts of debt can, with the help of an attorney, take steps to finally become financially free and take a sigh of relief knowing that he or she can have a fresh start and a new chance.

 

What Are the Types of Bankruptcy?

 

There are several different types of bankruptcy, called Chapters. If you are a private citizen, part of a couple, or part of a family, you have two options available to you: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy is the type that erases most of a person’s debt; in return, the person filing must liquidate his or her assets. A Chapter 13 bankruptcy is the type that lets a person consolidate his or her debt and requires a monthly payment that is distributed by a trustee. People with unsteady or no income usually favor Chapter 7, while people with reliable income usually favor Chapter 13.

 

What Are the Consequences of Bankruptcy?

 

This is a question that worries many potential bankruptcy clients and sometimes even keeps them from making appointments with a bankruptcy attorney in Suffolk. The most common concerns are the effect it has on credit scores and the risk of losing houses and cars. These are, of course, risks, but you may be surprised to find out how low the risk really is! Only 7 bankruptcies carry the risk of losing homes and vehicles, and usually the person filing meets the requirements to keep them. A bankruptcy does stay on record for years, but not filing when you truly need to file actually does a lot more damage; you can’t afford to avoid it.