Filing for Chapter 13 Bankruptcy is a big decision to make. It is advisable to have all the facts before pursuing this course of action. As such, it is pertinent that you seek some legal counsel from a Chapter 13 attorney. A lawyer specializing in the field of bankruptcy would be best suited to letting you know what the different options are that are available to you as well as whether or not this would be the best avenue to go down. Most people feel overwhelmed when they are faced with bankruptcy. This is a natural reaction as it is quite a huge decision to make.
However, you have to keep in mind that you may not be in the right mental state to make this decision on your own. If anything was to go wrong, you could end up losing everything you own. So instead of trying to save some money by not enlisting the services of a Chapter 13 attorney, you should bite the bullet and seek legal counsel from them. Here are some of the things that you should find out from a there.
1. Find out if this is the best type of bankruptcy for you to file. In bankruptcy law, there are several different chapters that one could choose to file. Each of these chapters has their own requirements for eligibility. In addition to this, the repercussions vary from one chapter to the next. You Chapter 13 attorney would be able to advise you on whether or not you are eligible for this type of bankruptcy or if you perhaps have to consider a different chapter to file.
2. Find out what will happen to your home once you file for this type of bankruptcy. Typically, your Chapter 13 attorney will file a motion to have your creditors frozen from trying to foreclose on your home once you decide to file for this type of bankruptcy. However, your home could still be at risk if you do not recover financially in a certain time frame. As such, you may want to consider negotiating with your bank to have a better rate or perhaps consider paying them a lump sum so that you can catch up on the debt that you owe.
3. Find out what consequences filing for those types of bankruptcy will have on your credit rating in the long term. You should also find out from your Chapter 13 attorney if there will be any short term implications that you should know about. It is pertinent that you have a clear idea of what the next three to five years will be like. This is the only way that you can start preparing appropriately to secure your financial future. and for more information.