Bankruptcy is a way to get relief from debt that has become unmanageable. Debt can become difficult to pay because of a number of reasons, from illness, to employment redundancies and layoffs, to family challenges. There are a number of reasons that you may seek the relief available from filing bankruptcy, and a bankruptcy law firm can help you to understand the process and the long-term consequences of filing for either a Chapter 7 or Chapter 13 bankruptcy so that you make the best decision for your individual case.
Hemet bankruptcy lawyers will help you to consider the pros and cons before advising you about what to do. Some things you should know are:
- You may be required to face your creditors in court. A court date may be necessary, depending on the debt that you are responsible for and the creditors who hold this debt.
- There is a required education component. These on-line classes help you to make sure you have exhausted all other avenues credit before actually filing for bankruptcy. Post-filing on-line classes are designed to help you develop financial management skills so that you do not find yourself in a similar position in the future.
- Not all debts are discharged. The process of filing for bankruptcy does not guarantee you a clean slate, and you may have certain debts that cannot be renegotiated to more favorable terms. You will likely continue to pay your debts (to trustees as opposed to your creditors), however payments should be lower. A Hemet bankruptcy lawyer can help you determine what debts will be lowered, which ones will remain, and what kind of outcomes will result from your particular case, should you choose to file for bankruptcy.
- Your credit score will take a hit. Bankruptcy means that your credit report could come back with a very low score for as long as ten years after the filing process has been completed. Fortunately, there are ways that you can rebuild your credit, but knowing that you will be subject to high interest rates and that you may have difficulty with renting or buying a home is something that you should be aware of.
Bankruptcy laws have become very complex and it is important to consult a good bankruptcy law firm in Hemet before filing. Ask a lot of questions about whether or not bankruptcy is the right thing for you. Find out what the pros and cons of filing for a Chapter 7 or a Chapter 13 bankruptcy are before making your decision.
