It’s always good to handle debts before they become unmanageable. But it’s even better to make it clear to yourself how such an act of aiming for financial freedom will affect your life. So here are the bankruptcy questions that you need to consider before filing for bankruptcy.
What Bankruptcy Questions to Ask Your Lawyer
Here are the things you should be discussing with your lawyer aside from his experiences and background before filing for bankruptcy.
Do I have any other options aside from bankruptcy?
The right lawyer will discuss with you upfront what choices do you have apart from bankruptcy. He will take the time to assess your situation. In other words, you don’t have to assume right away that bankruptcy is your last resort.
A good lawyer will then explore your options and discuss with you in detail everything that you need to know. This is also the best time to ask your lawyer the kind of life that you will possibly have after filing for bankruptcy. Like whether or not it will be hard to apply for a personal loan or to get a house. You may also ask for an advice on rebuilding your credit.
What are the different types of bankruptcy and what should I choose?
Chapter 13 is a type of personal bankruptcy that allows a debtor to pay for his debts through an attainable payment option. While Chapter 7 involves the process called a discharge in order to come out from unsecured debts. It requires passing a certain means test that has a list of criteria to meet and is used to regulate frivolous claims.
This is one of the good bankruptcy questions to ask and your lawyer is supposed to explain each to you. He must also help you decide which one will work best for your situation.
More Bankruptcy Questions to Ask
How much will filing for bankruptcy cost me?
Before proceeding to the next step, you must first have a clear understanding of how much bankruptcy will possibly cost you. That is why asking your lawyer the necessary bankruptcy questions is very important. Because the fact that you are putting bankruptcy into consideration, you are already experiencing a financial pitfall. So anything that will drag you down more will not help.
Aside from asking for the filing fees and such, also ask your lawyer to help you determine what assets can help you pay your debts. Assessing your properties will help you decide on how to proceed with the entire process.
How long will the entire process of filing for bankruptcy take?
Chapter 13, on the other hand, follows a certain payment plan and will most likely allow you to pay your debts in a span of three to five years. While Chapter 7 will only take up to a few months.
This is one of the most important bankruptcy questions to ask. It will give you a timeline on when you are possibly able to rebuild your credit.
Are there any potential problems in my situation?
Filing for bankruptcy is different from case to case. So ask your lawyer for the potential red flags in your case. An example is having a property under your name that you gave to a relative or family member. The court might see it as you are hiding it. And your lawyer should be able to tell if the court will find it suspicious or not.
Get Your Bankruptcy Questions Answered by the Limbocker Law Firm
It’s never too late to create a better tomorrow. And an experienced bankruptcy lawyer will be able to assess if you should file for bankruptcy or not.