Bankruptcy – 3 Things You Must Know Before Filing

bankruptcyIf you are looking for a bankruptcy attorney in Scottsdale, Arizona, then hold the phone. There are some important facts about filing for bankruptcy that you need to know for yourself. The world of bankruptcy filing is complex and often messy – but this article will attempt to clear up the three most important things you need to know before filing.

  1. You need to know which chapter to file under

Even when using an attorney, you should at least have a basic idea of which chapter under US Code Title 11 you will be filing for. Learn about the different chapters and which one applies to your case. This way you can have a conversation with your lawyer, rather than just being given information you didn’t know already. It will still be important to have an attorney go over the finer details with you, but you should at least have some idea before getting started about what you are going to do.

  1. Be aware of the negative effects of filing for bankruptcy

Bankruptcy is not a quick fix to money problems. It is a last resort that comes from financial desperation. If you are filing for bankruptcy, you are desperate – and if you aren’t desperate, you probably shouldn’t be filing. Ask yourself “what are my plans after I file?” If you want a loan – forget anything that doesn’t have high interest attached. Need a credit card? Again, no problem with high premiums and interest. How about that credit score? You will be followed around by your decision to file bankruptcy for another 7-10 years.

Maybe you don’t need loans or credit cards and plan to simply work hard and pay things with cash or from your checking account. It could be you just want privacy and for people not to know you had to file for bankruptcy. Well, you can forget that, too – when you file it becomes a matter of public domain.

  1. There are some lawyers who want to make money from your misfortune

It would be great if every attorney was looking out for your best interests, but sadly some are not. One of the first dead giveaways would be if the attorney is offering an incredible deal. If you are filing for bankruptcy and don’t think the fee is expensive, there should be a red flag going up.

These are the type of attorneys who will give you an outline of what to expect, rather than details. They will get the quickest deal – not necessarily the one best for you – so they can collect their fee and move on. Be smart and do some research on how to spot a crooked attorney (or how to spot a trustworthy one). All it takes is some time and access to the internet.

Filing for bankruptcy is a difficult decision that affects not only the lives of those who file, but of others as well (spouses and children, for example). If you are faced with having to file for bankruptcy, it is very important to know what you are getting into. Approach it with the caution it deserves. If you follow the three tips given above, your debt won’t go away – and your life probably won’t get any easier. What will happen is that you will be prepared. If you have any other questions regarding bankruptcy, hiring a bankruptcy attorney, or other legal matters, visit CanterburyLawGroup.com