When you are thinking on the lines of filing for bankruptcy, Chapter 7 or Chapter 13, it is natural that you will know very little of this complicated legal process. It is therefore best to consult with an established local bankruptcy lawyer to know the basics of this specific legal procedure that is typically overseen by the federal bankruptcy courts. This is a process that actually is designed to provide relief to those individuals and businesses who find it difficult to manage their current debt load. This process will help them either to eliminate the entire debt or pay a portion of the total amount they owe to the creditors.
Complex process with serious effects
Bankruptcy is a complex process but will help you to get rid of your debt provided you are aware of the consequences and avoid those. It can have some serious and long term effect on your finance and credit. Typically, this will stay in your report for seven to ten years thereby lowering your credit and borrowing eligibility with favorable terms and rates. Ideally, no average person is equipped to go ahead with this process alone.
Rules and requirements
There are lots of rules and regulations to follow in bankruptcy. Apart from that you will also need to meet with its specific requirements so that you can file for bankruptcy. It is required to prove by a filer that he or she is unable to repay the debts even after the best and most honest of efforts put in. You will also need to undergo proper credit counseling from a credit counselor who is approved by the government. In the end, considering all factors such as your finances, type of debt, age and budget, you will need to choose between Chapter 7 and Chapter 13 bankruptcy.
No representation is made that the quality of legal services to be performed is greater than the quality of legal services to be performed by other lawyers.