What You Didnâ€™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 youâ€™ll have to surrender your home, your car or your other material assets. This isnâ€™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, youâ€™ll have room to negotiate â€” meaning your fears of being rendered homeless may prove to be unfounded.
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 youâ€™re being repeatedly harassed by creditors, or youâ€™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 theyâ€™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 earnerâ€™s protection). Hiring a Delaware bankruptcy lawyer can help you understand the difference and find the solution thatâ€™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, youâ€™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 youâ€™ve learned from your experience, you should be able to improve your credit score over time.
As any bankruptcy lawyer will tell you, youâ€™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 youâ€™ll be able to restore creditorsâ€™ 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 didnâ€™t know you had.
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