Bankruptcy Lawyers Blog

Filing bankruptcy is a serious decision that should not be made lightly. It can be a gut-wrenching experience that will most certainly affect you for many years. It will take a long time to rebuild your credit after filing bankruptcy, and this will impact many areas of your life, including buying a home or a car and obtaining affordable insurance.

Before deciding that bankruptcy is the right option for you, it is important to explore all of your other options. While the bankruptcy laws are in place for a reason and can help you discharge insurmountable debts in the right situation, it is best to consider it a last resort. Ultimately, you must choose the best path to financial recovery available to you.

If you are a homeowner, you may be able to take out a low-interest home equity loan that will enable you to consolidate all of your other debts. Frequently, this interest rate will be lower than that of your other debts, and you may be able to pay off your debt slowly in this manner. This is only one option available to you. You should consult with a financial advisor to explore the many other options available to you before deciding to file bankruptcy.

If you decide that bankruptcy is the best decision for you, then you must decide whether to file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Chapter 7 is reserved for those people who truly need all of their debts completely discharged. Bankruptcy laws changed in 2005, making the requirements for filing Chapter 7 much stricter. For those who don't qualify for Chapter 7, there is the option of Chapter 13 Bankruptcy, where you must repay part of your debts according to a fixed payment plan.

The laws and regulations governing bankruptcy are very complex. It is important to hire an attorney specializing in bankruptcy law if you do choose this route. Please contact The Bankruptcy Directory today for a listing of lawyers in your area.