Going through a bankruptcy can be a stressful process to a person who is unaware of procedure, but it does not have to be. When deciding whether bankruptcy is right for your financial needs it is important to look into the risks and benefits of filing. Chapter 7 personal bankruptcies are more common than the public realizes.
Depending on the filing personâ€™s situation and circumstances filing for a Chapter 7 bankruptcy may provide the following: Eliminate the legal requirement to pay creditors of unsecured debt, like credit cards; stop pending lawsuits filing by creditors, like foreclosures; prevent wage garnishments from being placed against a personâ€™s income and stop harassment at home and work from debt collectors and agencies.
Bankruptcies are designed to help people in financial trouble, so they may start new without burdensome debt. In addition to the above mentioned benefits, during the process the filing person will receive financial management information as well. This information will help the person learn the tools and tactics to help them deal with any future debt and future financial planning.
On the other hand, it is important for the person filing to know that after the process that you will be debt free but the personâ€™s credit score will be affected. Bankruptcy stays on a personâ€™s credit report for ten years. However, a person can obtain a good credit score after three years of filing; so long as they stay in good standing with any new debt. This means after three years a person may take out a mortgage or purchase a new car.
If you are facing financial hardship or you are considering bankruptcy, then it is important to seek out a qualified attorney. Jayson Lutzky has over 29 years of experience practicing bankruptcy law. To set up a free consultation, call (800) 660-5299, or visit us online at www.MyNewYorkCityLawyer.com now.