What You Didn’t Know About Filing Bankruptcy

Posted by RahaimSaints on February 24, 2014 | Bankruptcy

Rahaim Saints 18 What You Didn’t Know About Filing Bankruptcy

Bankruptcy is a term fraught with misconceptions. For many, bankruptcy has turned out to be a positive experience, allowing them to begin their financial lives anew. For others, there may be alternatives other than bankruptcy that are better suited to their particular situation. Working with a qualified Delaware bankruptcy lawyer will help you learn the difference.

Common Misconceptions About Bankruptcy

One of the most common myths regarding bankruptcy is that declaring it means you’ll have to surrender your home, your car or your other material assets. This isn’t necessarily true, though it may depend on the particular details of your case. If you have a particularly skilled Delaware bankruptcy lawyer on your side, you’ll have room to negotiate — meaning your fears of being rendered homeless may prove to be unfounded.

The Benefits and Implications of Bankruptcy

Declaring bankruptcy is not a decision to be made lightly, but many Americans find that it can have a restorative and redemptive impact on your personal and financial life. Make no mistake: you will face difficulties in the coming years, but the benefits will make up for it.

If you’re being repeatedly harassed by creditors, or you’re facing repossession of your home, bankruptcy is one solution for dealing with the situation. Speak to a Delaware bankruptcy lawyer about your situation, and they’ll be able to tell you if bankruptcy is the right option for you.

A bankruptcy lawyer will also be able to explain the differences between and implications of the different types of bankruptcy. Chapter 7 bankruptcy (liquidation) is distinct from Chapter 13 (wage earner’s protection). Hiring a Delaware bankruptcy lawyer can help you understand the difference and find the solution that’s best for you.

Dealing With the Aftermath of Bankruptcy

After the dust has settled and a bankruptcy lawyer has helped you find a way to embark on the next chapter of your life, you’ll probably find yourself wondering where to go from here.

The effect of bankruptcy on your credit, for example, may be a lasting one. Your credit report will reflect the fact that you declared bankruptcy for as many as ten years afterward. The good news is that credit scores are flexible; if you’ve learned from your experience, you should be able to improve your credit score over time.

Rahaim Saints 19 What You Didn’t Know About Filing Bankruptcy

As any bankruptcy lawyer will tell you, you’ll likely find it difficult to get credit from financial institutions in the years following bankruptcy. Most banks will consider you a risk, particularly if you attempt to apply for an auto or personal loan, for example. That said, if you have a stable source of income, certain banks may be able to work with you to secure a credit card or a small loan. Most of these transactions will be backed by a deposit you provide to the institution, meaning you’ll be able to restore creditors’ faith in you, little by little.

As with any legal proceedings, finding wise counsel is important. A Delaware bankruptcy lawyer will work with you to build the best possible outcome and to discover any options you didn’t know you had.

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