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Clearing Up Misunderstandings About Bankruptcy
People often hesitate to file for bankruptcy because they have received misinformation
regarding the effect doing so will have on their lives. Others file and are then unhappy as
they had incorrect expectations. The way to avoid problems such as these is to speak to
experienced Bankruptcy Attorneys and learn how filing for bankruptcy will impact one's debts,
long-term financial situation, and assets.
The Discharging of Debts
women often go into bankruptcy believing all of their debts will be discharged when the process
is complete. bk lawyers is
not the case, as criminal restitution, student loans, and child support remain the
responsibility of the debtor. In addition, other debts may not be discharged, which is why an
attorney is needed to review the case and provide the debtor with clear expectations. When
Chapter 13 bankruptcy is chosen, the person filing must complete their approved debt repayment
plan within the designated time frame in order to have the remaining debt
Bankruptcy leads to the loss of one's assets or so
many believe. When filing for Chapter 7 bankruptcy, debtors may find some assets are required
to be liquidated while others are exempt. In either Chapter 7 or Chapter 13 bankruptcy, secured
assets may be retained through the payment of the asset in the Chapter 13 repayment plan or
through a reaffirmation agreement in a Chapter 7 bankruptcy.
Don't assume a bankruptcy will destroy your financial future. While the
filing does remain on the credit report for ten years, many debts are eliminated helping to
bring the credit score up in a shorter period of time. Secured claiming
bankruptcy may be used to rebuild credit following the discharge of the debt, and
borrowers typically find they can obtain a mortgage within two to four years of the filing.
While there are personal
bankruptcy chapter 7 where filing for bankruptcy can negatively impact a person's job
prospects, a current employee cannot be fired or discriminated for taking this action.
Furthermore, government entities cannot take bankruptcy proceedings into consideration when
considering an applicant for a job.
If you believe filing for bankruptcy would be of
benefit to you in your current financial situation, speak to an attorney today. He or she
explains the process and provides honest, accurate information. This information makes it
easier to determine if this is the right option or if other debt relief solutions need to be
investigated. Consumers find the right solution provides the relief they desire while allowing
them to have a better financial future.