When it comes to managing your finances, some people barely get by and others thrive. If you happen to be in the former category instead of the latter, there are probably a wide variety of circumstances that got you there. But make no mistake: having to file for bankruptcy or seek help when money situations become tight does not make you stupid. In fact, 20% of US bankruptcies were filed by well-educated people.
Seeking help when it comes to bankruptcy and restructuring your assets is one of the smartest things you can do if you’re ever faced with a terrible financial situation. Instead of throwing up your hands and letting your debts accumulate to your detriment, it’s much better to seek out bankruptcy attorneys that you can trust who will help you get your life back on track. Bankruptcy lawyers alone are the people that you should be consulting during this trying time for a wide variety of reasons.
The Laws are Different in Every State
The main reason why you need a good bankruptcy attorney on your side is that laws are different in every state. Depending on where you live, filing for bankruptcy can mean somewhat different things and entail different processes. While it almost always means letting go of assets you own and eliminating your current credit history, there can be extenuating circumstances that either allow you to proceed down different avenues, timetables of payments/fines or actually keep certain assets in your name (such as a work vehicle). Just like how different divorce lawyers must navigate the complexities of how one state legally splits up a married couple, a bankruptcy attorney who lives in your area and is experienced will be the best person for the job.
Navigate Your Credit Situation
In almost all circumstances, declaring bankruptcy means the end of credit for at least seven years. If you still owe creditors lots of money or have mortgages, unpaid assets, or more, then you’ll want a
bankruptcy attorney to work out how to best deal with these situations so that your credit reflects the situation properly. While many U.S. states allow for a person’s personal credit history to be erased after seven years, you may be able to start rebuilding your credit history sooner after bankruptcy by getting a bankruptcy attorney involved and on your side to handle your credit situation. Whether this means getting credit cards, a new mortgage, or some sort of business loan, that will be up to what your bankruptcy attorney can negotiate for you going into the future.
Keep Away Fines and Penalties
When you don’t have the money to pay your bills, it can be difficult to avoid fines and penalties that may build up. Simply declaring bankruptcy might not put a simple end to these clauses and contracts that you owe money to, which is why you’ll want the help of a legitimate and qualified bankruptcy attorney on your side to make sure that these fines and penalties don’t continue. This can be especially tricky if you have a tax bill due, or owe other government agencies money in some way. Only a bankruptcy attorney will be able to properly keep fines and penalties at bay or be forgiven, depending on the circumstances. This is most definitely not something that you want to DIY or try to figure out on your own, as not filing the correct forms or paying the correct amounts to agencies can simply result in more fines and penalties over time.
A Good Attorney is Worth It
Hopefully, after reading this article you recognize how having a good bankruptcy attorney on your side can be a great tool to have if you ever need to declare bankruptcy. Just because you no longer have any financial assets or can’t pay your bills doesn’t mean that you should give up moving forward. Instead, by getting some good help on your side and navigating the particulars of your area, you can put yourself and your family in the best position possible to escape from bankruptcy with optimism on the other side of the fence. We hope that when you need legal help, you’ll turn to Josh O’Neal and Associates for all of your bankruptcy needs and much more.