Bankruptcy can give you the fresh start you need. However, this isn’t a financial decision that you should take lightly as it can impact you for years to come. Here are some things that you can expect when you decide to declare bankruptcy.
You’ll Have to Take a Class
In order for bankruptcy to be beneficial, you need to learn how to start making smart financial decisions. Because of this, you will be required to take a class before you file for bankruptcy. The class is 90 minutes in length, and it will give you tips for managing your money and how to wisely use credit in the future.
A Bankruptcy Attorney Is Crucial
You shouldn’t try to declare bankruptcy by yourself. There are a lot of steps that need to be taken in order to successfully file for bankruptcy. A bankruptcy attorney can help you with all of this. They can help you fill out the necessary documents, and they can answer any questions that you may have.
You’ll Get to Keep Some of Your Assets
Many people avoid filing for bankruptcy because they fear that they will have to give up all of their assets. Fortunately, many individuals are able to keep a lot of their assets. Things like clothing, personal property, and electronics won’t have to be surrendered during a bankruptcy. You may also be able to keep a few of your larger assets such as your home or car depending on the laws in your state. A bankruptcy attorney will let you know which assets you will be able to keep.
Not All Types of Debt Can Be Discharged
Bankruptcy can provide you with a clean slate if you are behind on things like credit card bills or car payments. However, there are some debts that you won’t be able to discharge during a bankruptcy. These include student loans, child support, and back taxes.
It Will Go on Your Credit History
Bankruptcy will affect your credit score. It will go on your credit history, and creditors will be able to see it for about 10 years. However, it will fortunately have less of an impact on your score as time passes.
If you are considering filing for bankruptcy, there are some things that you should know. By utilizing all of the information mentioned above, you will know what to expect before, during, and after you’ve declared bankruptcy.