In these hard economic times, trouble meeting financial obligations due to industry downsizing, layoffs, or other factors such as health issues can force people to make hard decisions. Filing Bankruptcy is never an easy decision to make. Many people in similar situations as you are faced with these same dilemmas and the same questions as well. Many consequences can arise from filing bankruptcy some are myths and some are harsh realities. A good place to start when considering bankruptcy is to sit down with a competent bankruptcy attorney and discuss what some of your options are, and clear up the questions that you may have concerning the possible consequences of filing bankruptcy.
Although there are fees associated with attorney consultations, these costs can many times save people money in the long run by eliminating the enormous amount of time and effort locating the resources to file properly. A Bankruptcy lawyer can guide you through the process and provide much needed advice as well as the necessary forms and instructions to ensure that you quickly move through this distressing time while minimizing the lasting impact that a poorly processed bankruptcy can have. Included is a useful “Fact or Myth” section that can help clear up some of the common questions people considering bankruptcy have. It is also important to have an attorney that understands the consequences and impact that financial stress causes on a household. No one plans on financial distress and with good representation the effects can be minimized so that the plans for a brighter future can be realized in a shorter timeframe.
Fact: Bankruptcy usually does not affect your current employment. Bankruptcy may however affect future employment opportunities should the perspective employer utilize credit checks as part of their hiring process.
Myth: Student loans can be discharged through bankruptcy. Student loans are generally not dischargeable through bankruptcy because there is an added requirement of the loan causing undue hardship for the obligation to be severed. This is a high bar that most bankruptcy courts are unwilling justify.
Fact: The costs of filing bankruptcy can vary greatly in both time and money. This generally depends on the financial complexity of the client. Whether or not they are married with children, own a business or other concerns come in to play.
Fact: Unfortunately filing bankruptcy will affect your credit, but quickly resolving the dilemma will allow you to begin rebuilding your credit and on the road to good financial health.
Myth: People who file bankruptcy automatically will lose their home. A person’s home is generally handled different than other types of property or debt. It’s important to contact an attorney to analyze your specific situation to determine how your house will come into play.