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Why You Need a Bankruptcy Lawyer

Apr 6, 2008
When debts get to the stage where all normal avenues to resolve the situation have failed, most people turn to a bankruptcy lawyer for advice; these specialist lawyers can help their clients through a particularly difficult time.

As the changes in the law have meant that filing for bankruptcy is now more time consuming, it means that a number of people have found themselves struggling with the process. Using an attorney can make this much easier. Despite all this extra paperwork for debtors, once it has been completed, the bankruptcy petition can proceed in the same way as it did before the changes in law.

Fortunately, the United States bankruptcy protection code provides certain exemptions for people who are filing for bankruptcy when it comes to the disposal of property. It is unlikely that your home or vehicle will be at risk. In addition to this there are extensive exemptions for clothing, furniture, and personal property.

Other restrictions or amendments may also be enforced at state level and this is where a local bankruptcy lawyer will be of most use. Most people considering filing for bankruptcy don't own many high value items, so their property consists mainly of what they need to live and work. This is exactly the kind of property your legal representative will ensure is protected from creditors.

Details of bankruptcy will stay on your credit record for up to ten years but there is more to it than that. In fact, the primary points on the credit scoring system are based around your more recent financial history and not on transactions made some time ago. To this point, your lawyer should warn you about certain financial companies that contact bankrupt people and offer credit. Extreme caution is required here.

Hopefully before this situation occurs, your bankruptcy lawyer will warn you about certain credit companies that add on huge fees and increased interest rates. This would make repaying a loan problematic and may land you in further financial difficulties. If you only accept credit deals that you can handle comfortably and you always pay more than the minimum amount, your credit history will start to rebuild itself.

For careful individuals, this credit rebuild can be as little as two to four years, providing everything is kept up to date. That said, your bankruptcy will still be on your record but will probably not be used to prevent the purchase of a new home or prevent the acquiring of an unsecured loan.

There is now and probably always will be a stigma to bankruptcy. The credit industry quietly fuels this notion as it makes people reluctant to pursue bankruptcy. If this attitude continues, it will just ensure that legislation will become more restrictive. It will therefore become increasingly difficult to apply for bankruptcy.

While there are obviously some people that want to take advantage of the bankruptcy protection system, your bankruptcy lawyer will probably try to assure you that you are just a victim of misfortune who is being given a second chance. Hopefully, that is the case.
About the Author
For more free information about bankruptcy, bankruptcy lawyers, and dealing with lawyers in general, visit Florida Lawyers
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