Bankruptcy can be a viable solution if you have accumulated debts and cannot pay them back. However, there are many things to consider before deciding to file. For instance, you need to determine the bankruptcy type that will offer much-needed relief for your situation. In addition, you'll need clarification on other issues before filing. Because of that, it's prudent to enlist the help of an attorney. During the consultation, remember to ask them the following essential questions.
Who Should Consider Declaring Bankruptcy?
Anyone in debt turmoil has a right to declare bankruptcy. Therefore, consider filing bankruptcy if you cannot pay back what you owe others. However, not everyone in such a situation qualifies to be a bankruptcy candidate. So, it is advisable to consult a bankruptcy lawyer before filing. They will evaluate your case to determine whether declaring bankruptcy is the best solution to your financial woes. If it is, they will guide you through the filing process to ensure that your application is successful.
How Will Bankruptcy Solve Your Financial Problems?
Declaring bankruptcy can solve your financial problems in different ways. First, you will get an order barring your creditors from taking any subsequent action to collect debts. So, if you have not made mortgage payments for some time, your lenders will not start the foreclosure process after filing for bankruptcy. Usually, such an order remains active until the determination of the case. Therefore, you will have an opportunity to catch up on payments that you have missed. The court orders may also stop not only wage garnishment but also harassment by debt collectors. Most importantly, it will provide a plan to discharge your debts.
However, you can only enjoy these benefits if your application goes through. This is one of the reasons you should consider working with a bankruptcy attorney. They will assist you in choosing the right bankruptcy type for your situation. Your attorney will also help you to file for bankruptcy. They will guide you in each phase to shield you against errors that might delay the process or make you fail to qualify. That way, you'll complete the process before your creditors seek permission from the court to take legal action against you.
Having accurate information is the best way to determine whether declaring bankruptcy is the most suitable remedy to get out of debt. As such, you should consider consulting a bankruptcy attorney before filing. When you consult a lawyer, let them answer your questions so you can make sound decisions.
For more information, contact a local bankruptcy lawyer.