Answers to Questions for a Bankruptcy Lawyer

by Jeffrey Maseko

Bankruptcy is a serious business and affects the lives of everyone concerned, so this should not be taken lightly and the services of a bankruptcy lawyer will be a positive move forward. The bankruptcy process has been made more complicated recently and more work is required before it can be processed which is something a bankruptcy lawyer will be able to carry our on your behalf so that there are no mistakes. Although the amendments to the bankruptcy law are designed to eliminate the time wasters, no other real changes have been made so once you have overcome this hurdle your bankruptcy lawyer should be able to proceed as normal.

The US bankruptcy code provides protection via exemptions to people who are filing for bankruptcy so they will be allowed, under normal circumstances, to keep their home and car for instance. Other exemptions are also incorporated into the law so that other personal possession, items needed for work, furniture and the family automobile are protected from creditors so that the person can still go to work but your bankruptcy lawyer will be able to expand on this subject.

Other restrictions or amendments may also be enforced at state level and this is where a local bankruptcy lawyer will be of most use. Most people who are considering filing for bankruptcy don’t own a lot of high value items so their property consists mainly of what they need to live and work and that is exactly the kind of property that the bankruptcy lawyer will ensure is protected from creditors.

The unfortunate aspect to this is your credit rating will be affected and on your record for a decade. You see, you’re the majority of your credit score rating is made up of more recent financial activities and not so much about past ones.

Your bankruptcy lawyer will tell you to be wary of these offers at this time as many companies specialize in approaching these types of cases and offer loans at extortionate interest rates or conditions that will put you back in the position you were before. Your bankruptcy lawyer will be able to advise you on reputable companies but whatever your credit agreements are, you will do your credit rating a great deal of good if you ensure that you always pay more than the minimum required.

For careful debtors, this credit rebuild can be as little as two to four years providing everything is kept up to date. That said, you bankruptcy will still be on your record but will probably not be used to prevent the purchase of a new home or an unsecured loan.

Bankruptcy is not a crime although many credit institutions like to promote the idea that it is only wasters and failures that become bankrupt and whilst this incorrect and harmful attitude continues many people will struggle unnecessarily with their finance rather than become bankrupt. This belief also makes it easier to get support for legislation that will make it harder for people to file bankruptcy. Your bankruptcy lawyer will tell you that the vast majority of people who file for bankruptcy are honest hard working people that are just victims of poor fortune and circumstance and not criminals who are trying to deceive the state.

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