Few words can bring about the initial fear and panic as the word “bankruptcy”. For so many years the negative connotations of it were psychologically and socially devastating. These days, however, the practice of filing bankruptcy proceedings is often seen as a sensible and practical means of dealing with financial circumstances that have become too big a burden for an individual or business. In 2008 alone, over one million bankruptcies were filed. Debt consolidation plans may have some appeal to you, but be warned; interest rates can still be exorbitant, some creditors may refuse to participate in the plan, and there are always fees involved for this service, even though these plans are most often run by creditors.
When you have decided that bankruptcy may be a viable solution for you, the next big step is selecting an attorney or law firm to guide you through the myriad of complexities of bankruptcy law. And there are many. You will want to find professionals who specialize in this area of the law, not just handle it as a sideline. It takes years of practical experience to be able to navigate the details and convolutions of bankruptcy law, and getting someone who has as much experience as possible is crucial. You will also want an individual or firm that has built a solid reputation within the community over a long period of time. Individuals experienced in dealing with not only debtors, but also with creditors and trustees should be another plus in your considerations.
Deciding which chapter of bankruptcy is most appropriate for you is the first big decision that your attorney will help you with. One type of bankruptcy requires you to negotiate a payment plan for a certain amount of your outstanding debt, while another wipes out all outstanding debt once certain criteria have been met. It all varies based on a client’s circumstance and good Bankruptcy Attorneys account for this. An incorrect decision at this point could be financially devastating later on.
Bankruptcy is not the black mark it once was. Selecting professionals to represent you is the first step on your road to financial recovery. With their assistance, most debtors can have their credit rebuilt within two to three years. You could be one of those.