There are numerous things everyone should know about declaring bankruptcy. Lets talk about what some of those things are.
What To Consider Before Filing
Before filing bankruptcy there are a few things that a person should consider with one of them being how it will affect their credit. When a person files for bankruptcy then they need to know that it will show up on their credit report whenever someone decides to check it. Also a bankruptcy will stay on a person’s credit report for many years which is something that not many people realize.
Decide What Type Of Bankruptcy To File
Another thing a person will need to do before they declare bankruptcy is what type of bankruptcy they will file. If a person does not run a business of any kind then the chances are they will want to file for what is known as Chapter 7 bankruptcy. A person will want to do a little bit of research on the different types of bankruptcy and then file accordingly.
Benefits And Cons Of filing For Bankruptcy
There are quite a few benefits of filing for bankruptcy with the main one being that a person will be able to have a virtually clean slate. This means that most of their debts will be wiped clean and they can start over financially speaking.
Another benefit of filing for bankruptcy is that once a person has filed calls from lenders who want their money will cease. This means that lenders and debt collectors will likely stop contacting the person who has filed for bankruptcy. This means that the person does not have to worry about unwanted phone calls to their home or even to their workplace.
However there are some cons to filing for bankruptcy. As previously mentioned a bankruptcy will stay on a person’s credit report for years which means that they may have a difficult time getting a loan or anything else that may require a good credit score and good history report. Click this website for more info.
Many people believe that all debts are cleared when they file for bankruptcy but that is not the case at all. There are some debts that will not go away even after a person files for bankruptcy. Usually people who have unpaid mortgage debt or child support debts will still owe them even after they have filed.
Should A Person Hire A Professional
If a person is considering filing for bankruptcy then they should hire a lawyer because the bankruptcy process is very complicated. Not only is it complicated but if a person makes one mistake even if it is a little mistake then they may find that they have to start the entire process allover again. A professional will be able to look over all the paperwork and they will be able to make all of the court appearances which means that a person will likely not have to appear in court.
How long Does The Process Take
Everyone’s case is different so the time it takes to complete the entire bankruptcy process will vary. However a person can expect the entire process to last an average of three to six months. However if a person makes a mistake then the process can be much longer than six months. This is why a person should hire a lawyer because the lawyer will be able to make the process go as fast and smoothly as possible.
If a person is serious about http://dedebt.com/bankruptcy then they should keep this article in mind because this article can help a person go about filing bankruptcy the correct way.