The best way to proceed with bankruptcy is by knowing the consequences of it. To start with you must know that there are a few specific debts that cannot be forgiven though it can eliminate most of it including a few old tax debts. When you meet a Personal bankruptcy lawyer Huntsville you will come to know that debts that bankruptcy cannot eliminate include student loan, reaffirmed debt, alimony, child support, any penalties and fines imposed by the government, federal tax lien, and fines or penalties imposed on you by the court. Therefore, first you need to know the types of debts that you can get forgiven.
Lose possession of property
The most evident consequence of bankruptcy is that you will lose your property. No matter whether you file for a Chapter 7 or a Chapter 13 bankruptcy, both the forms will involve giving up your possession of assets. These non-exempted assets will be sold off to arrange for the cash required to repay your creditors. These assets include real estate, vehicles, antique pieces and jewelry and exclude work tools, car for personal use and equity of your primary residence. Such bankruptcy can also affect others who may have co-signed for the loan making them responsible for repayment.
Reduce borrowing power
Ideally, filing for bankruptcy will surely affect your credibility and reduce your borrowing power. You may get loans with difficulty but for low amounts and high rates of interests. For Chapter 7 bankruptcy, this effect will remain for ten years and you cannot file for bankruptcy again in eight years after filing it. On the other hand, Chapter 13 bankruptcy, the effect will be for seven years and you cannot file for bankruptcy again within the next two years from your first filing. Therefore, work an experienced attorney to reduce the harm to your credit score.
No representation is made that the quality of legal services to be performed is greater than the quality of legal services to be performed by other lawyers.