3 Important Things to Know Before Filing for Bankruptcy

Are you overwhelmed with your debt load? Behind on all of your credit cards and other bills? You are not alone, many people today are struggling to handle their debt issues. You are probably looking for solutions, and are finding it difficult to get all of the information that you need. You may even be considering filing for bankruptcy. Filing for bankruptcy is not a decision to be made lightly. It is important to know all of your options, and finding a Bankruptcy Lawyer in Nassau County will help you to understand those options. Radow Law Group will have all the information you need and more regarding filing bankruptcy.

There are Different Types of Bankruptcy

The two most common types of bankruptcy that individuals file are Chapter 7 and Chapter 13. Chapter 7 bankruptcy requires liquidation of all of your assets. This type will discharge all or most of the debts. The individual may be able to keep some assets, but all non exempt assets will need to be liquidated. Chapter 13 bankruptcy reorganizes the individuals debts. A payment plan is created to payback back the creditors over a 3-5 year time frame. This plan is a good option for those individuals that have a steady income, and have the ability to make monthly payments.

Certain Debts are not Covered by Filing Bankruptcy

For many, filing bankruptcy is certainly the best option to get them back on track financially. But, many do not realize that not all debts can be erased through bankruptcy filing. Even if you do file, you may still have debt left for which you are responsible. The following debts or obligations can not be erased through the bankruptcy process: Student loans, Alimony, Real estate liens, Child Support, tax debts, debts obtained through fraud, and certain luxury items.

Bankruptcy is not Free

Many people mistakenly believe that filing for bankruptcy is free of charge, this is not the case. The biggest cost of filing for bankruptcy is often hiring the lawyer. Lawyers often charge an hourly rate. So, depending on the complexity of your case, this can really add up quickly. There are also court and other costs involved, these costs can vary. The type of bankruptcy filed also makes a difference with the costs.

Usually Chapter 13 bankruptcy is more costly to file than Chapter 7 since it is a process that takes several years to complete. There are non-monetary costs involved too that are often overlooked by many. Your credit score will be low after filing and this will last for many years. This will affect your ability to obtain loans or obtain credit for close to ten years. This is an important aspect to understand, especially if you want to purchase a home or vehicle. Those plans will need to be put on hold for quite some time after filing for bankruptcy protection.

Take Big Steps With Confidence When Backed By A Bankruptcy Lawyer

Filing for Bankruptcy is a big decision, and one that requires assistance from a specialist. It is important to hire a lawyer that has specialized in bankruptcy law. Finding a bankruptcy lawyer Nassau County is easy, just contact Radow Law Group. The lawyers at Radow Law Group are specially trained in bankruptcy law, contact them today to get the information you need about your bankruptcy options.

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  • Radowlaw Team