One of the biggest fears of those who are considering the act of declaring bankruptcy is losing their personal property, particularly their house. Consulting with an attorney that can help to address what the chances are of losing a house in a particular scenario can help someone to prepare. Looking at how to keep from losing the home can be made a priority while declaring bankruptcy, and if an attorney is aware of this goal they can definitely help to make it a priority during the course of filing. Of course if the home is the only asset the debtor possesses, there is a good chance it could be auctioned off to pay creditors. Having other assets available to sell is definitely an advantage in this particular scenario.
Planning Ahead
Deciding which creditors should be paid off is exceedingly important, because otherwise someone might end up in a precarious situation. Some creditors will be more than happy to accept even a small percentage of what they are owed, while other creditors will fight tooth and nail for every cent. Being able to differentiate one from the other and then plan accordingly is very important, because otherwise there is a chance that declaring bankruptcy could result in the loss of a lot of property. While your attorney can do all of the legwork for you, it is sometimes best to get as much of it done yourself as possible in order to keep their costs down.
Facing Reality
The truth is that filing for bankruptcy is never a pleasant event, but sometimes it is necessary to move forward in life. The existing Bankruptcy Protection Law statutes are put into place to protect those who are filing, and a competent attorney will know how to take advantage of them in order to protect their clients. Declaring bankruptcy is not going to magically erase all debt though, certain debts such as student loans can never be discharged. Being made aware of this fact and deciding how to cope with the debt later on is extremely important, because otherwise there is a good chance that it could be a lifelong struggle.
Moving Forward
There is definitely life after bankruptcy, but it is important to remember that one’s credit will be effected for three years after the process is complete. There will be many issuers of credit who refuse to work with someone based on their filing bankruptcy, but others will definitely be willing to. A lot of it can depend on why someone declared bankruptcy, whether or not they paid off any of their creditors and of course their current financial situation. Addressing all of these things is important when speaking with someone about taking out a loan to buy a car or something else of value. While keeping the home after declaring bankruptcy is an important first step, there is still a whole lot of ground left to cover moving forward with the process in the long haul.
