If you are considering bankruptcy, you might have seen advertisements about doing it yourself. However, almost all legal experts agree that using local debt lawyers to help you file for bankruptcy is in your best interest.

Bankruptcy Might Not Be Right For You

A very important consideration is whether or not bankruptcy is actually right for your situation. Without legal expertise, this can be a difficult question to answer. A local debt attorney could very well recommend a different option that you either didn’t know about, or didn’t know you qualified for.

Harassment by debt collectors is one of the reasons people contact local debt lawyers. Despite laws in place against certain types of behavior, some unscrupulous debt collectors still threaten and harass. An experienced debt attorney can put an end to illegal harassment.

If your attorney does decide that bankruptcy is the best option, he or she will be able to walk you through the sometimes confusing procedure. The proper paperwork must be filled out, or else you risk having your request thrown out in bankruptcy court.

Different Types Of Bankruptcy

While there are different kinds of bankruptcy available in the United States, there are two that are most commonly used by individuals. These are Chapter 7 and Chapter 13.

Chapter 7 bankruptcy is where debts are dissolved. While any bankruptcy will obviously affect your credit score, this type of bankruptcy offers a sort of ‘clean slate.’ This enables you to immediately begin rebuilding your credit score.

Bankruptcy laws regarding Chapter 7 have changed over the years, and there is now a means test that is applied to everyone who files for it. The purpose of the means test is to prove whether or not your income is low enough, when compared to others in similar circumstances, to qualify for a removal of debt.

Chapter 13 Bankruptcy

When you file for a Chapter 13 bankruptcy, you are basically asking the bankruptcy court for permission to reorganize your debt. A plan of debt repayment must be presented and approved by the bankruptcy judge. This plan is crucial to being granted this form of bankruptcy, which is why it is in your best interest to use local debt lawyers to help you file it.

You will be required to attend debt counseling before you are granted a Chapter 13 bankruptcy. This debt counseling will help you plan your reorganization, and also how to live as debt-free as possible in the future.

Most repayment plans last between 3 and 5 years. This will give you enough time to comfortably repay your debt. A local debt attorney will be able to explain in detail what is expected of you before and during this time.

Some people find that, during their repayment plan, their income drops dramatically for reasons outside their control. This might be due to a job loss or accident. If this happens, contact your local debt lawyers and explain the situation. They will try to assist you by getting your plan modified or even discharged due to hardship.

Bankruptcy Can Change Your Life

Bankruptcy sounds scary, and it can be if not done correctly. However, it can also offer a fresh start to a whole new life. Contact your local debt lawyers today to help you decide what is best for you.