If you plan to file for bankruptcy to redeem your financial r=problem, you need to make sure you are aware of the legal implications that come with your decision. Once you file for bankruptcy, you discharge all the debts to your creditors and you start afresh.
Does It Clear Everything?
Unlike what many people think, filing for bankruptcy does not remove the debt burden completely. A personal bankruptcy does not emancipate you from the taxes you owe the state or the national government. For instance, you don’t discharge personal loans such as student loans and any other obligation you have.
Emancipate unscheduled debts
The good thing about filing for personal bankruptcy is that it relieves you from all the unscheduled debts such as money you owe to car-financiers, foreclosures, medical bills and the like. This also clears credit card bills. You can also file a simultaneous bankruptcy for business. However, these cases can become complicated, so it is advisable to hire a good lawyer for the right advice.
What Happens after Filing for Bankruptcy?
Many people feel so relieved when they apply for bankruptcy. However, there are some things you shouldn’t do when to stay clear of trouble. First, you shouldn’t go for any more credit as you try to recover your tattered credit report.
If you feel as if you wish to repair your credit report immediately, then you need to rethink your decision. Such a thought can get you into big trouble because the loans and credit cards dump you back into debt and can lead to a second bankruptcy that makes the situation worse.
You need Professional Assistance
The process that is involved in filing for bankruptcy is a long and complicated one. In order to make it painless, you need to work with a professional lawyer who understands the situation you are going through and who becomes the main source of inspiration. Make sure you know why you want to file for bankruptcy, a situation that is echoed by the lawyer before you proceed.
You come across a large number of lawyers who have the capacity to help you, but choosing the right one requires tact and patience.
Filing for bankruptcy is one of the ways to emancipate yourself from unscheduled debts. The good thing is that you can do away with the loans that are spoiling your credit report. Take time before you can start working on your credit score again.