Filing for bankruptcy may seem like a pretty easy task. You fill out a few forms, submit them to the courts, and then your debts are forgiven. Unfortunately, it's not quite that simple. The bankruptcy laws have changed so much that filing without an attorney can end up costing you dearly. Here are just a few of the reasons why filing for bankruptcy without an attorney may be a big mistake.
The terms of a chapter 13 bankruptcy agreement will have a strict repayment schedule that you'll need to adhere to, and they'll have potentially severe consequences should you fail to make your required monthly payments. Making each payment can be difficult, however, especially when you face an unexpected expense, like a major car repair. There may be hope, despite what the terms of your bankruptcy state, however. If your automobile breaks down and you won't be able to pay your creditors, talk with your trustee and see if the payment schedule can be extended.
If you want to adjust the amount of your loan by restructuring it, one way to do so is with a Chapter 13 bankruptcy. There are many benefits to selecting this type of legal status to make changes in any loans that you currently owe. It is critical to your success to know certain things about what this bankruptcy is and what is involved in the filing process.
What is Chapter 13 Bankruptcy?
In some instances, filing for a Chapter 13 bankruptcy makes more financial sense than filing for a Chapter 7. There are many factors that dictate which filing is available to you, but sometimes, you have more than one option. Here are some situations in which a Chapter 13 filing might be best.
You Want to Repay Your Creditors
If you have a personal desire to repay your creditors instead of having the debts discharged, a Chapter 13 is the best option.
You applied for the perfect job and the employer even called you in for an interview. Everything was going along swimmingly until the hiring manager mentioned the next steps, including a check of your credit.
Increasingly more employers are performing credit checks in addition to traditional background checks on potential new hires. In some cases, the employees may be required to handle money directly or even indirectly. In other situations, employers may look at credit history as an indicator of responsibility, integrity and reliability–or a lack thereof.
