Common mistakes people make while filing for Bankruptcy

Common mistakes people make while filing for Bankruptcy

Filling for bankruptcy is a complex procedure and making any mistake in application can lead to hefty fines and financial damages. So it is better to hire any top rated local Chapter 7 bankruptcy lawyer to help you out with procedures. These professionals will help also guide in every proceeding at the court. Given below are a few mistakes that people make when they file for bankruptcy without a lawyer:  

Chapter 7 or 13 – Most of the people get confused that if they should file under Chapter 7 or Chapter 13 because both of them are for filling bankruptcy but follow different criteria. When you are filing under Chapter 13 then you are liable to pay the whole debt amount with interest while in Chapter 7, you are not required to pay any amount. But you need to pass a few tests and discussions at the court. Also, you need to prove that your income falls under the required level. The lawyers will help you in proving the same and help you in getting the bankruptcy declared with ease.

Future Impacts – a lot of people don’t even file for with fear of future negative impact on their personal and professional life like biased or terminated from work place, will never be able to file for bankruptcy again and also it will give a huge bump to your credit score. However, all of the three fears are not at all true because discrimination or termination from work on the basis of bankruptcy is illegal. A person can again file for bankruptcy after a required period of time and anyone can rebuild a new and even better credit score after getting over from their bankruptcy.     

Another benefit that people enjoy by hiring a lawyer is that they are no more required to face the embarrassment of dealing with the creditors. The lawyers will deal with them on your behalf.

Categories: Business

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