If you’re in financial trouble then you’ve probably investigated a lot of different options for increasing your income and reducing your outgoings, but it’s rarely as easy as people would like it to be. Bankruptcy should be the last step – the thing that you do when all else has failed – and at that point, you will go to an attorney and ask them to help you file for bankruptcy.
A bankruptcy lawyer’s main goal is to make sure that the paperwork is done correctly, and to advise you of any potential pitfalls with your filling – for example, if you have been bankrupt once before and are worried about how filing a second time might affect you, they will be able to offer advice.
In many cases – whether this is your first bankruptcy or not – there are better options than actually going bankrupt right away. It could be that you would benefit from negotiating with your creditors to make a settlement.
If you’re thinking of putting in for a settlement, then you should, first of all, collect all of the information about what you owe and who you owe it to. Talk to your creditors, and try to come to arrangements with them individually. The amount that you offer should be proportionate to the amount owed and the amount you can afford to pay everyone – so that the creditors can see that you are making a good faith effort to pay them back.
In some cases, a bankruptcy lawyer can help you with this – they can offer suggestions for arrangements and settlements. For instance, Bankruptcy Attorney Austin is a great reference to consider. If you are willing to take the hit to your credit rating then a full and final settlement could be an option. The issue with these settlements is that they still sit on your credit rating, and they will show in the report as you settling the debt rather than actually satisfying it – which means that it will take longer for your credit report to recover.You can find more details on the facebook page here.
A good bankruptcy lawyer will check whether bankruptcy really is the best option for you and will explain the implications of the decision. They will then prepare the documents, and advise you about how the courts are likely to rule. If you have assets then you may be ordered to sell them to put them towards the debt. If there is something that you desperately want to keep, then you should discuss that with them as early as possible so that they can tell you if there is any way that you would be able to keep it. They will also explain to you how the bankruptcy process will work and what your obligations will be before you are discharged. Listen to the advice that they give, because bankruptcy is a reset button but it would be unfortunate for you to use it then go on to make the same mistakes again when you are given a second chance.