If you’re going through a financial crisis, bankruptcy can be a last resort to getting out of debt. However, it’s important to know that working with an attorney will help you get the best outcome under difficult circumstances.
Know what bankruptcy can do.
If you’re new to bankruptcy, it’s important to understand what it can do for your finances, how it works, and the two types of bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 allows an individual or business to discharge their debts in bankruptcy court without affecting their credit score. This means they don’t have any more debt payments after filing for this type of bankruptcy (unless they choose to make additional ones).
However, if someone wants to keep making payments on their debt under this option, then they must pay more than 25% each month towards their outstanding balances over 15 years—and those remaining are due immediately upon filing as well as being fully discharged upon completion!
Know your options.
Knowing what type of bankruptcy you have is important for the best possible outcome.
There are three main types: Chapter 7, Chapter 13 and Chapter 11 (also known as reorganization). Each has its requirements and benefits, so it’s important to understand how each impacts your life.
If you’re considering filing for bankruptcy but don’t know which option might be right for you yet, this article will help guide your decision-making process by answering some common questions related to each type:
Understand all potential short-term and long-term costs, including non-financial ones.
You’ll pay short-term costs immediately after filing for bankruptcy, such as filing and attorney’s fees. Long-term costs refer to anything that happens down the road, including having to pay back taxes or student loans if there’s no plan to do so (and, therefore, no way of avoiding this). Non-financial costs can also include lost income due to missed work days or finding another job while working through bankruptcy proceedings.
Make sure you understand the fees charged by the attorney.
- The attorney should provide a quote for the fees. This can be done through phone or email, and you must understand exactly what the attorney charges. If they don’t want to explain this in writing, then they’re probably not being honest with you about their work and its cost.
- The attorney should be able to explain how the fees will be paid. This may include:
- Credit card payments (if applicable)
- Paying at least one month in advance
- An automatic payment plan
- The attorney should be able to explain when payment will be due.*
Working with an attorney will help you get the best outcome under difficult circumstances.
When a person files for bankruptcy, they are not just choosing to file for bankruptcy but also choosing the lawyer to represent them. An attorney can help you understand your options and choose the best for your situation. They will also be able to explain why certain options might not work out as well as others do and how those factors could affect your case going forward if it goes through court proceedings or negotiations with creditors before it reaches that point—which is something everyone should know before making any decisions!
The best way to find an NYC bankruptcy lawyer right for you is by getting as much information as possible from them before taking action. You’ll have a better idea of what they can do and how they work with clients like you if they’ve already worked with similar clients or dealt with similar situations themselves!
