Bankruptcy is a legal process that occurs when a person or company has incurred debts but can not pay them. If you have obligations that cannot be resolved or have a dire economic situation due to losing a job, declaring bankruptcy can be a solution. With bankruptcy, people can settle their debts, take a break and start over.
Bankruptcy is a solution
Bankruptcy prevents late debts from accumulating over time. When a person’s legal obligations have been completed, they will have the opportunity to rebuild your credit again. If an individual decides to declare bankruptcy, they will need to contact bankruptcy lawyers that can help find a solution based on their situation.
Why should people consider hiring an attorney?
A lawyer will explain all the legal procedures needed to comply with the state’s bankruptcy laws. The law firm can also recommend the best bankruptcy option according to each person’s needs. In fact, hiring an attorney may prevent the debtor from losing their home.
After bankruptcy proceedings start, by law, the collection companies must stop all contact. Attornies can help negotiate with credit card companies to lower their client’s debts and monthly payments too. A reliable lawyer will create a payment plan that can be completed. If necessary, he or she could help a client sell certain assets so they can pay the debts.
Reasons to call a bankruptcy professional
A reputable bankruptcy lawyer can help on several fronts.
- The first consultation should always be free
- A legal team that speaks Spanish and other languages should be considered
- Receive professional help quickly
- Improves the debtor’s credit score
Improving your credit score
Not only can a person start over, but this experience will give filers the opportunity to learn how to budget and better manage their money. Also, most people who complete a Chapter 13 or Chapter 7 bankruptcy increase their credit score (FICO). A Chapter 7 case is the most common form of bankruptcy.
Chapter 7 is a legal act that eliminates debts and is available to individuals, married couples, and corporations. It is also known as Liquidation bankruptcy. Chapter 13 is another common form of bankruptcy. It reorganizes individual debts and provides a payment plan for some or all debts over a period of three to five years.