Filing for bankruptcy is often a last resort for people in desperate circumstances. It can be a good way to get a fresh financial start, but the procedures can be complicated and you may not understand exactly what bankruptcy entails. When it comes to filing for Bankruptcy Bethlehem residents should take the time to learn about what to expect. Below are some of the most commonly-asked questions about filing for Bankruptcy Bethlehem.
Can I file for bankruptcy without a lawyer?
While it’s technically possible to file for bankruptcy on your own, this isn’t usually a wise decision. Bankruptcy laws have become more complex in recent years, and a good lawyer can clarify confusing legal matters, assess your assets and recommend the best course of action for your particular situation. Hiring a lawyer is especially important if you’re in danger of losing your house or vehicle because of delinquency. A lawyer can help stop this from happening while your bankruptcy is being processed.
Will filing for bankruptcy take care of all my debts?
While bankruptcy will eliminate or postpone most debts you have accrued prior to filing you claim, including delinquent lines of credit and past-due bills, there are certain types of debt that it will not cover. These include alimony or child support payments, student loans and certain tax obligations.
Will I lose my house after filing for bankruptcy?
Not necessarily. In many cases your home will be exempt from the claims of creditors and lenders, and you will be legally protected from repossession for a time after filing bankruptcy. In some cases, you may have to file a Chapter 13 bankruptcy to protect your home. This allows you to set up a legally-recognized payment plan that will allow you to catch up on late mortgage payments.
How long will my credit be affected?
Generally, bankruptcy will stay on your credit record for 7-10 years. This can make it more difficult to receive bank loans and lines of personal credit during this time period. However, bankruptcy is often the only way to wipe out debt that is already destroying your credit, so it can give you a better opportunity to build good credit.
Understanding exactly what bankruptcy can and can’t accomplish can help you to decide whether or not taking this course of action is the right choice. If you have additional questions, it’s best to discuss them with a bankruptcy attorney.
