There are instances when an individual does not want to consider filing for bankruptcy. Bankruptcy certainly seems appealing; however, one might prefer to continue paying his indebtedness. But, oftentimes, the burden is too heavy to carry and the harassment from the creditors has reached the point of interfering with one’s normal activities. The financial circumstances have turned for the worse due to loss of employment, sickness, or divorce. One could start to feel like the sword of Damocles is hanging over his head with no other option but consider bankruptcy. Should be this be the case, the first step that needs to be undertaken is to consult with a bankruptcy lawyer in Woodland Hills.
Is bankruptcy the solution?
Bankruptcy is a step that needs to be considered and carefully evaluated. More recently, Bankruptcy laws have been modified due to rampant abuses and it requires submission of relevant supporting papers so as not to face the risks of dismissal. Hiring a competent bankruptcy lawyer means enjoying the benefits of all his expertise and knowledge of the laws. The lawyer understands the different complexities of the bankruptcy laws and is capable of explaining the details that have to be considered.
It is very obvious that many individuals face the scenario of incessant harassment from creditors specifically collection agencies due to delinquent credit card payments. Filing for bankruptcy puts a stop to all these actions and the individual gains some peace from the threats of wage garnishment and litigation. However, filing for bankruptcy requires that the individual qualify for such relief depending upon his current financial circumstances. Inasmuch as filing bankruptcy is a legal process, it requires a consultation with the best bankruptcy lawyer in Woodland Hills to assess whether or not the individual will pass the “means test.”
Facing the consequences of bankruptcy
Filing for bankruptcy is not free. There are attorney’s fees that have to be considered including filing fees and the cost of credit counseling courses. One must also face the possibility of surrendering properties that can be liquidated to pay creditors. It is important to make an accurate list of all the assets since failure to do so might result in the dismissal of the application. An individual also faces the fact that his credit score will be negatively affected for at least 10 years. This will have an effect in future applications for bank loans or car financing.
Bankruptcy is not always the solution for financial constraints. There are other debt relief programs that can be considered depending upon the financial situation. The laws have become complex enough and gaining debt-relief has become quite difficult. On the other hand, filing for bankruptcy can delay all proceedings for foreclosure, garnishment, repossession and other debt collection activities. Once bankruptcy is approved the individual can enjoy a debt-free life. With credit counseling course, he will be able to manage his finances well enough so as to avoid being on a similar situation again.
Bankruptcy is a step that needs serious consideration and consultation with a bankruptcy lawyer Woodland Hills area to determine the future consequences of the action.
