What to know before filing for bankruptcy

After you file for bankruptcy, almost all your unsecured debt disappears. Most personal loans and credit card debt are unsecured, and they will go when you go for the liquidation option. Hence, bankruptcy is a major way out for people who find that their assets and dwindling too fast to cover their growing liabilities. However, the following information includes what to know before filing for bankruptcy.

What to know before filing for bankruptcy

The type of bankruptcy

4rthrgerwThere are two types of bankruptcy named chapter 13 and chapter 7. The first one is a liquidation bankruptcy since its purpose is to discharge most of the unsecured debt of an entity. This option is the most commonly understood. The second one is the reorganization bankruptcy where an entity is seeking a repayment plan and some accommodative terms. Only people with regular income can access chapter 13 bankruptcy so that they make monthly repayments as per their new plans. Besides the two known types, there is chapter 11 bankruptcy that is also a rebate option, but it only services a select number of creditors. Finally, there is chapter 12 bankruptcy that is available to farmers and anglers. Thus, it is important first to know these types and then evaluate the one that is most suitable for you or the person you are recommending bankruptcy as a solution.

Bankruptcy affects your credit

A bankruptcy filing communicates to your creditors and to the financial industry that you are incapable of paying your debts. Therefore, they will adjust your rating for future borrowing downwards to accommodate the risk that you present them as an undesired borrower. So, on the one hand, you gain because most of your unsecured debt disappear, but you tie yourself to a potential mate that is difficult to get out of once you become financially secure and in need of financing.

You can only discharge some debts

Bankruptcy only works for a select number of debt obligations, and it will not magically solve all your financial needs. When someone declares bankruptcy, they still have to pay taxes that they owe. They will also have to pay child support if they have that obligation. People often consider credit counseling and loan refinancing as temporary solutions for their financial troubles because they understand that bankruptcy effects might be irreversible.

The bankruptcy paperwork is public

There is no way to go bankrupt in private. Every interested person will know that you are bankrupt because the filling is in public. If you happen to have many creditors you owe, then the court will still exercise its power to refuse or award them titles to your remaining finances. Therefore, you might lose the privacy to your finances and still have to pay some of your debts.

What to know before filing for bankruptcy tips offer you a preliminary defense against the repercussions of your choices. Besides that, you will become a subject to the orders of a lawyer, and this implies that you will have attorney fees to cover. These tips let you enter the decision rationally so that you have very little to regret after you decide.…

What to consider when hiring a personal lawyer

456y5uthrgerAnybody who has dealt with legal matters will tell you that the type of lawyer that you will choose and settle on, will to a large extent, influence the outcome of your case. They can either make or break your case. That is why it is advisable that one exercises a lot of caution when they are recruiting a personal lawyer. There is a host of factors that one will need to take into consideration before settling on somebody to represent them legally. Those factors include the academic qualifications that one has attained, where he or she is located, the amount of money that they charge for their services and a host of many other factors. In addition to the factors that we have listed above, there are others that you are supposed to give specific emphasis so that you settle on the best personal lawyer.

Ensure that you settle on an individual who could have a deep understanding of your case, he should be an individual who will maintain the highest professional levels during the entire case and a person who will be there for you throughout the entire process. Let us look at some of the other factors that you will need to give prime consideration.

The area of specialization

When you are hiring a personal attorney, this is an area that you are supposed to give prime consideration. Even though many individuals will argue that a lawyer is a lawyer, you will realize that we have several segments of law. That is why it is very important to ensure that when you are hiring a lawyer, you hire somebody who is specialized according to the area that your case lies. They must have had an experience of handling cases like yours before.


Most individuals assume that a lawyer who is busy throughout, or one that is not available is usually a quality lawyer who is not the case. Before you make any commitment to any lawyer, it is very important to establish the number of times you will be able to meet them whenever the need arises. It is advisable that you contact a personal lawyer who you will be able to communicate with frequently as this will not only ensure that you handle your case properly, but it will give the both of you some level of personal satisfaction. It is advisable that you settle for a personal lawyer you will be able to easily access and communicate with, on the basis that is regular, so that you can frequently receive updates on the progress of your case while you also give instructions on what you want to be done.

Cost of service

Before you enter into any commitment with any personal lawyer, it is important that you take into consideration the amount of money that they will be charging for the services that they will provide to you. Ensure that the person you hire, you will be able to comfortable paying them.3456y5u54y3t

Work experience

It is also important that you take into consideration the experience that one has from their previous engagements. Look at their performances from the previous engagements, and based on your findings, you can make a determination if they have the capability of handling your case or not.…