Most people view filing for bankruptcy as a way of getting a fresh start financially. If you feel like you are too deep in debt and you have no means of repaying your creditors, the law has a provision that helps you protect you from losing your private property. However, before you make the decision to file for bankruptcy, you need to know about all the legal ramifications of filing. Hiring a Bankruptcy Attorney in Tuscaloosa should be the very first step you make.
Why hire an attorney?
Before you file for bankruptcy, you have to find out if you actually qualify. To qualify, you have to meet the following criteria.
Your median income has to be lower than that of your state.
You must have filed all your overdue international tax returns.
You must agree to participate in a credit counseling session.
An attorney will help you find out if you meet the criteria. In case you do not meet the criteria, they will help you figure out other options that could be of help. For instance, they could help you come up with a debt repayment plan.
Getting legal advice
Before you file for bankruptcy, you should also know about all the future repercussions to your credit history. First, a bankruptcy will leave a record on your credit score. This might affect your future ability to borrow money. If you are thinking about getting back to business, you might have a problem getting new business partners. It is therefore important to have in mind the fact that rebuilding your credit and credibility will take a long time after the bankruptcy.
After filing
When you successfully file for bankruptcy, the first thing that the federal bankruptcy court will do is have a look at your finances and expenditures. They do this to avoid fraud. They will then put a stay on your private property, meaning that creditors cannot come after you or sue you. The rest of the process will be quite simple after that.
You need a competent lawyer to guide you through this process. A Bankruptcy Attorney in Tuscaloosa will help you with all the advice and guidance you need. For more information, click here to investigate.
