Legal

What to Consider Before Filing Bankruptcy

August 21, 2021
lawyer job description

Doing a cost-benefit analysis before we make any serious financial decisions is necessary. It allows us a chance to stop, really think about the outcomes of a decision, and then make sure to think again before deciding. Filing for bankruptcy is one of those situations where you need to weigh in the pros and cons to make sure that you are not doing anything that might come back to bite you later on. One of the best ways to decide whether or not you should file for bankruptcy is by talking to a bankruptcy lawyer. You can look up bankruptcy lawyers in your area, and then talk to a few people before deciding on one and book a consultation appointment with them.

  • Bankruptcy should always be filed as a last resort, so you want to make sure that you explore all other options before deciding on filing bankruptcy. A bankruptcy lawyer can sit down and discuss other potential options you can look into before making the decision.
  • You should consider the type of bankruptcy you are filing, be it Chapter 7 or Chapter 13. Both of these come with their own set of advantages and issues. A bankruptcy lawyer should explain both to you in detail and then suggest what might work best given the needs of your case.
  • Your lawyer should ideally sit you down and explain the long-term consequences that might come with filing bankruptcy. This means telling you whether or not all your debt will be canceled, which assets of yours can be sold off to debtors, and how this can affect your credit score and the likelihood of getting loan requests approved by most banks and lenders.
  • They should also let you know about all of the costs and time that will go into the entire process.
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