Is-a-bankruptcy-lawyer-worth-the-money

By: Lewis Phillips

A bankruptcy lawyer is there to represent and protect his client during the bankruptcy process; their assistance may ease some of the stress during this awkward period.

In an effort to try and reduce the number of cases which may not be legitimate, the law was changed and this has made the initial preparation of filing for bankruptcy a lengthier process. A decent attorney, however, will be able to make sure that nothing is missed. The end result is the same for most debtors and once the means testing and the credit counseling session are over, the vast majority of people end up filing exactly the same kind of bankruptcy petition that they would have before the law changed.

Insolvency laws in the United States have a certain bankruptcy protection built in, whereby the individual filing for bankruptcy will not, under most circumstances, lose his or her home. In addition to this, there are extensive exemptions for clothing, furniture, and personal property.

Some States also have additions to the federal code but your bankruptcy lawyer will be able to inform you about these and how they will affect your bankruptcy period. The Insolvency law is designed to protect certain things like your house and car. This enables individuals filing for bankruptcy to live and work. There are exceptions if high value items are available that can be used to help clear debts.

Details of bankruptcy will stay on your credit record for up to ten years but there is more to it than that. In fact, the primary points on the credit scoring system are based around your more recent financial history and not on transactions made some time ago. To this point, your lawyer should warn you about certain financial companies that contact bankrupt people and offer credit. Extreme caution is required here.

Hopefully before this situation occurs, your bankruptcy lawyer will warn you about certain credit companies that add on huge fees and increased interest rates. This would make repaying a loan problematic and may land you in further financial difficulties. If you only accept credit deals that you can handle comfortably and you always pay more than the minimum amount, your credit history will start to rebuild itself.

If after a bankruptcy, you are able to keep your financial affairs straight for two to four years, you will find your credit rating will probably be back to normal. That said, your bankruptcy will still be on your record but will probably not be used to prevent the purchase of a new home or the obtaining of an unsecured loan.

Most people that have become bankrupt have done so as a last resort, probably trying all the other alternatives. It isn't an easy decision to make so the credit companies should not give the impression that only losers and failures take this action. If this attitude continues, it will just ensure that legislation will become more restrictive. It will therefore become increasingly difficult to apply for bankruptcy.

While there are obviously some people that want to take advantage of the bankruptcy protection system, your bankruptcy lawyer will probably try to assure you that you are just a victim of misfortune who is being given a second chance. Hopefully, that is the case.

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