Important Keys When Filing For Bankruptcy

Bankruptcy filings have reached all time highs within the past decade, with the vast majority of bankruptcies in this day and age coming from personal filers. When you are about to go through the bankruptcy process, it is critically important that you learn all about the process, so you are well aware of what to expect. Take these points into mind as you also reach out to a bankruptcy lawyer who can help you. 

What circumstances necessitate the bankruptcy process?

A lot of circumstances can contribute to a financial hardship that might push you toward bankruptcy, including bad investments or unforeseen medical bills. When you accrue debts that you are unable to pay off, you will want to go through the bankruptcy process in order to seek relief. That debt relief an come in the form of either a Chapter 13 bankruptcy or a Chapter 7 bankruptcy. 

What makes a Chapter 13 filing different from a Chapter 7 filing?

When you receive a Chapter 13 bankruptcy filing, you'll be put on a payment plan that gives you approximately 5 years to pay back your debt. If you owe debt from a wide variety of different creditors, they will be consolidated into one debt bill, so that you can pay back the courts, which will then allocate the money to your individual creditors. They will also shield you from harassment and collections actions during this 5-year time span, giving you the freedom to pick up the pieces in your financial life. 

With a Chapter 7 bankruptcy filing, the government will take inventory of your assets so that they can be liquidated in order to pay off debt. Not everything is on the table, since items like your home or family heirlooms may be protected from liquidation, based on the bankruptcy laws of your state. Consider these two different forms of bankruptcy as you reach out to bankruptcy lawyers in your area. 

What should I look for when hiring an attorney?

Prior to hiring any bankruptcy lawyer, you should sit down with a firm, such as Collins Toner & Rusen, for a consultation. It is during such a consultation that the bankruptcy lawyer will comb through your belongings and financial information to make sure that you are eligible for either type of bankruptcy. From here, you'll need to ask them for specific cases of situations similar to yours that they successfully assisted with. This way, you'll know you are getting the best attorney for the job. Further, get a readout of their attorney fees, so that you stay within your price range. 

Follow this information and use it as you seek bankruptcy relief.