When your debts become unmanageable, you might think of declaring yourself bankrupt. This will prevent creditors from making calls, issuing letters, petitioning you, and stopping service shutoffs, expulsions, and foreclosures. You might also discharge the obligation to settle several debts and boost your credit. But before you can declare yourself bankrupt, it's vital to understand bankruptcy law and how it works. Getting a bankruptcy attorney is recommended because they know the law and have handled many similar situations before. Here are things a bankruptcy lawyer wishes you knew before registering for bankruptcy.
You Will Have to Be Patient
Even if the situation is dire, it's vital to know liquidation is not a quick fix for your credit issues. Lawyers are experienced with bankruptcy courts and processes, so believe them when they say the process takes time. Some cases take several months while others take years, so allow the bankruptcy attorney to work. They'll do their best to complete the process within the shortest time, so be patient and supportive to get the new beginning the laws and documents promise.
You Can Talk to the Debtors
Bankruptcy is meant to be a last resort for companies or individuals who are so deep in debt that they don't see a solution to their financial challenges. So before you consider filing for bankruptcy, it's vital to explore other alternatives. For instance, your debt relief lawyer may recommend that you negotiate with the willing creditors or loan servicers to accept some reduced payments for a longer duration. The lawyer may also negotiate with the revenue authorities if you owe taxes to determine if you're eligible for compromise offers. If none of these options works out, you can file for bankruptcy.
You Won't Avoid All Debts
If you opt to file for bankruptcy, it's vital to know that some debts won't go away. Obligations like child support, alimony, real estate aliens, tax, student loan, and some luxury items must be settled. You might also need to go for a creditors' meeting before the insolvency process is complete so they can dispute the discharge of the dues you owe. If they win, they will expect you to pay them. Make sure you involve your bankruptcy lawyer throughout the process.
Understanding the ins and outs of bankruptcy helps you make informed decisions. So, keep this in mind and follow the lawyer's advice because they know more about bankruptcy law.