Should I Visit a Bankruptcy Law Office?
There are many reasons why people may enter a bankruptcy law office to consult an attorney about filing for bankruptcy. Perhaps, you are unsure if you should take this big step. To help, here are some of the major benefits as well as some of the significant negative consequences that filing for bankruptcy can entail.
The first and most obvious benefit to filing for bankruptcy is that you may be able to have the serious debts that have been causing you so many problems discharged so you no longer have to pay them. Under a Chapter 7 bankruptcy, you will be more than likely able to discharge many of your debts. The debts that are the most likely candidates for this discharge are unsecured debts. Unsecured debts are debts that are not collateralized. A collateralized debt would be one in which a person who signed a contract for a loan pledged that certain property would be seized if he or she did not pay off the loan. The different kinds of unsecured debt can vary greatly and include things such as credit card and medical bills.
Under Chapter 13 bankruptcy, a complete discharge of an individual’s debt is also quite likely. However, the debt will only be discharged after the debtor has attempted to repay at least a significant portion of that debt through a restructured repayment plant that will last anywhere from three to five years.
Another strong benefit of filing for bankruptcy is that your creditors will no longer be able to harass you about the payment of your debts. Indeed, creditor harassment regarding payment and missed deadlines can be one of the most stressful parts of falling into debt. During a bankruptcy, however, a creditor isn’t allowed to call a debtor, send the debtor letters, or contact a debtor in any way in an attempt to collect on his or her debts. If they do, they will be subjected to serious sanctions by the court.
Of course, there are serious negative consequences to becoming legally bankrupt as well. One possibility is that you may lose some of your assets. This is especially a risk for people who file for Chapter 7 bankruptcy. There are indeed many exceptions to a person’s property being sold as part of a Chapter 7 liquidation. For many people this will include all of their property. However, what kinds of assets can be excluded from liquidation can differ from state to state. If you have certain non-essential luxuries such as a second car or investments such as stocks and bonds, you may end up losing these in the bankruptcy.
Another negative impact will be the effect it has on your credit history. The fact you filed for bankruptcy will remain on your credit history for a very long period of time. In California, for example, it will remain on your credit report for ten years. This may cause you problems if you ever try to take out another loan or buy a house. There may be a tradeoff though with discharged debts being removed from your credit history.
If you are considering whether or not to file for bankruptcy, it is suggested that you do in fact enter a bankruptcy law office for a consultation to help you decide on what you should do. 
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