Filing for bankruptcy is an important step for all borrowers. However, it should never be made in a hurry as there are certain consequences that must be evaluated in advance. Set your important goals before getting this financial protection. Do not forget that this process has far-reaching effects and benefits. If you want to find out more about them, take time to consult with reliable lawyers or browse around this website.
There are certain situations that should be treated quite carefully when filing your bankruptcy petition.
- Dealing with co-debtors. They are also known as co-signers, and they may include your friends or relatives. If you basic goal is to get rid of as many debts as possible and fast, filing for Chapter 7 bankruptcy is your best choice. The main problem is that co-debtors are not protected because your credit companies can contact them to get their money back, even if your bankruptcy case is discharged. When planning to protect them, think about Chapter 13. This is when you will deal with a certain repayment plan and regular installments.
- Favoring only one unsecured debt over others. It is all about credit cards and the loans that are not backed up by collaterals. Keep in mind that your bankruptcy trustee will review all financial documents and records that you have, so do not try to hide anything. Your reliable lawyer will explain you that all debts should be included in your filing petition. Otherwise, you risk ending up with certain legal complications, such as high fines.
- Having many non-dischargeable debts. The basic purpose of Chapter 7 bankruptcy is to eliminate all of them, but you need to learn more about their types. That’s because you will be still required to pay off your secured debts, even if you get the necessary discharge. They include mortgage payments, car notes, taxes, student loans, child alimony and others. Take into consideration federal and state loans. If you have many of them, bankruptcy filing will not help you a lot.
Hiring an experienced and qualified lawyer is one of the best things you can do to manage such complicated situations. There are many legal specialists, but their services and fees may differ. You should check their personal and professional traits to ensure that you are dealing with someone reliable and comfortable. Trying to find the cheapest one is a poor idea because of a low quality.