Miami Bankruptcy: Key Questions to Ask if You’re Considering Bankruptcy, Part Two

In our previous blog entry, we identified several important questions to consider while determining whether or not bankruptcy makes sense for your situation. We’ll provide answers to several more of those questions today. Please contact us today if you’d like to learn more!

Will a bankruptcy make it impossible for me to get credit in the future? Even though a bankruptcy goes on your credit history, it may not make matters worse. If you’ve been struggling financially for a while and have lots of late and missed payments, bankruptcy probably won’t make your credit report worse and may even make it better, especially if there’s evidence that you’re trying to get your finances straightened out.

Can anybody find out about my bankruptcy? Your bankruptcy is public information. Details of your bankruptcy are available on the bankruptcy court website, which includes information about the date of filing and the creditors you owe money to. Some people may routinely run checks on these records, such as insurance agents.

Is there anything I can do now? You often have to attend a class before you file. Bankruptcy requires completing a credit-counseling course with a government-certified counseling agency. The counseling course can be completed any time within six months prior to filing. If you’ll be filing within a couple of months, don’t wait until the last moment to take the class.

Is now the right time for me to file? You can benefit by planning ahead, and it makes a difference when you file. If you’re drowning under an onslaught of medical bills, you don’t want to file immediately if you’re likely to be hit with more medical bills. Once you’ve filed for bankruptcy you can’t file again for eight years, so you shouldn’t file while you’re still incurring debt.

Do I need an attorney? Yes, you’ll probably need an attorney. Bankruptcy laws are very complicated, so complicated that it’s unwise to try to file on your own. Many people file for bankruptcy without really understanding what bankruptcy is, and they may file when other options would be better. It’s common for people filing on their own to file under the wrong chapter. There’s also often confusion about the proper papers to file. One of the more complicated aspects of bankruptcy is ensuring that the property exemptions are correct, and filers without an attorney also often don’t know how to defend themselves against actions seeking to deny discharge. And, an attorney is important to make sure you’re filing at the right time and that the terms of the bankruptcy are as favorable to you as possible.

If you’d like more information, or if you’d like to discuss your personal situation, we’re available. Please contact us today to learn more!