The personal bankruptcy process can be one of the most effective debt relief options available, particularly for those who are looking to eliminate large portions of debt relatively quickly. That being said, bankruptcy is not for everyone and it does bring with it a host of consequences that are hard to ignore. Before you make the decision that bankruptcy is the best course of action, perhaps you should read through the following article, as we will take a look at 3 commonly asked questions.
When it comes to the most commonly asked questions regarding the bankruptcy process, most people are looking for specific instructions on how to claim bankruptcy. They want to know where to start, who to talk to and what to expect as a result of their claim. In particular, they are looking to answer the following questions –
1. How Do I Qualify For Bankruptcy? – Before a claim can be filed all debtors must complete a “means test,” which will look at their income, debts and expenses. In essence, a means test will determine whether or not your financial situation warrants bankruptcy. The means test is also meant to discourage people from filing that don’t have sufficient need.
2. Do I Need To Hire A Bankruptcy Attorney? – No, you are not required to hire an attorney. However, we recommend that you do hire one if you have the money. The reason is that an attorney can offer legal advice and representation, and they can also assist with the time-consuming process of filling out paperwork. You should expect to pay between $1,000 and $2,000 for a reputable attorney.
3. How Will Bankruptcy Impact My Credit? – Your credit rating will be severely impacted by filing a bankruptcy claim, which will affect your ability to seek financing. It will take about 10 years before your credit rating will begin to rebound.
For more bankruptcy information, consider setting up an initial consultation with a reputable attorney in your area. Most initial consultations are free of charge and they can be a great way to learn more about the benefits (and consequences) of filing.How To Claim Bankruptcy – 3 Common Questions by Steve