There comes a time in most peoples lives when they will need a lawyer. The law is an important part of our lives, whether for personal, family or business. People do not hesitate to see a doctor when they experience health problems, or to ensure good health, but people fail to seek legal counseling or advice when it comes to their legal rights. Sometimes a person's first experience with a lawyer is when they are in serious trouble or when the situation is already out of hand. This can make that first experience very traumatic. Finding a lawyer before you are in a distressful situation will prepare you for the future.
Bankruptcy laws give individuals seeking debt relief to main options: Chapter 7 debt eliminations and Chapter 13 reorganization.
In Chapter 7 bankruptcy, debts like credit cards, medical bills and utility bills can be completely wiped out. Some property may be used by the bankruptcy courts to repay creditors--however, bankruptcy laws in each state allow individuals to keep much of their most valuable assets.
In Chapter 13 bankruptcy, individuals past-due on mortgage payments or auto loans work out a repayment plan in bankruptcy court. Filers who also have credit card debt or medical debt may be able to reduce or eliminate those bills. A local bankruptcy attorney can help you decide which bankruptcy option may best suit your needs.
If you're thinking about filing bankruptcy, you're probably wondering how bankruptcy affects credit.
It's true that bankruptcy stays on a credit report for up to 10 years (maybe less depending on which type of bankruptcy is filed), but once the slate is essentially "wiped clean" after a successful bankruptcy filing, people can instantly start rebuilding their credit. In fact, many people even gain stronger credit scores after filing bankruptcy because their old debt is gone and they can start fresh. Think about it--your credit probably wasn't that great to begin with. Bankruptcy was designed to clear debt to give people a fresh chance.