Bankruptcy is often seen as a last resort when all other efforts to manage severe financial problems fail. You have protection under bankruptcy laws to minimize losses by filing under Chapter 7 or Chapter 13. While the provisions of the law are complicated, you can get relief from indebtedness with representation by a bankruptcy attorney.
Filing independently without knowledge of the law’s intricacies increases the likelihood of making an error that creates costly delays and re-filing expenses. Even though a fee for legal service is required, getting competent advice from an attorney is the first step toward minimizing your losses.
Using Bankruptcy to Avoid Foreclosure
The most expensive investment for most people is a home, and bankruptcy can protect your home from foreclosure if steps are taken in time. Owning a home represents stability and security for a family as well as a nest egg for retirement, and it is essential to protect it. The savings that you can realize by avoiding foreclosure are worth far more than the cost of legal representation.
Protecting Ownership of Possessions
Bankruptcy laws let you keep some of the possessions that you bought but have not paid for. The penalty for doing so is that your credit report shows your bankruptcy for years, but that is not always a negative consequence. An attorney can help you make important decisions that have an impact on your current situation as well as on those in the future.
Choosing the best form of bankruptcy, in consultation with a bankruptcy attorney, can affect the amount of savings that are possible to achieve. You need to know how to retain some purchases without paying for them as provided by certain provisions in the law. One form of bankruptcy provides an opportunity to work out a plan to partially pay creditors in an agreement that a court approves.
Protecting Your Credit Rating
Merchants can see records that reflect your credit worthiness, and their decisions affect what you pay for insurance premiums and interest on automobile and other loans. Hidden charges are those that you do not see on a credit card bill, but they exist nonetheless. Choosing the form of bankruptcy that lets you avoid paying for purchases has a more negative effect on your credit rating than the form that requires a partial payment. The advice that an experienced attorney provides can help you save money on hidden charges that are not usually understood.
Evaluating Your Options
At a decision point that requires action, you face choices that affect your financial future. Acting immediately or delaying action is an important decision that may result in savings, depending on the recommendation of an attorney. Only with knowledgeable advice can you make an informed decision that affects the future welfare of your family. Deciding to file is one of the most momentous events in your financial life, requiring the best advice available. You have a chance to minimize your losses by hiring a bankruptcy attorney.
Author’s bio: Alexander Law is a law firm which provides quality legal services in Brisbane, Caboolture and Melbourne area.