Many consumers wonder when is it the right time to consider filing for Bankruptcy in Aurora. Filing for chapter 7 or chapter 13 bankruptcy is a big financial move with lots of benefits as well as a few serious consequences. With either chapter 7 bankruptcy, it is possible for consumers to get rid of most of their debts immediate. Those who don’t qualify for chapter 7 bankruptcy may want to consider a chapter 13 bankruptcy where debts remaining after an affordable repayment plan are discharged. The end result is that consumers will greatly decrease the amount of income spent to service existing debt. This means more money from every paycheck going to families rather than lenders. Although all of this sounds good, there are a couple of significant drawbacks for consumers to consider.
First of all, bankruptcy results in negative credit history. The bankruptcy action will remain on the credit report for seven to ten years. It will be difficult to get many types of loans. However, a lot of consumers who have filed bankruptcy are able to get credit cards and other loans within a few years of the bankruptcy. Secondly, the bankruptcy may make it difficult to get employment in some jobs where financial responsibility is important. Although these drawbacks are significant, the financial benefits from filing for bankruptcy such as getting rid of monthly debt payments outweigh the negative. That is why many consumers should seriously consider for Bankruptcy in Aurora.
Dealing with a good law firm with a lot of experience in bankruptcy filings is important when deciding to file for chapter 7 or chapter 13. Potential clients can usually get a free consultation to determine if bankruptcy is the right solution. The bankruptcy lawyer can quickly assess whether or not a potential client will qualify. If the consumer qualifies for bankruptcy, the initial consultation is a good time for consumers to figure out if they’re dealing with a good law firm. Lawyers who work on bankruptcy cases have to make sure that all of the required paperwork is submitted. Because bankruptcy laws are complex, a good lawyer is essential to a successful filing. That is why it is important for those who are filing for bankruptcy to make sure the right law firm is being chosen.