The concept of declaring bankruptcy may have a negative connotation to it. However, under the right circumstances and for the right person, it may come with serious benefits that outweigh any of its possible drawbacks. With that being said, continue reading to learn whether bankruptcy is a good idea for you and how an experienced Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C. can help you make this determination.
Under what circumstances is bankruptcy a good idea?
Simply put, you should turn to bankruptcy once you have already exhausted all your other options for debt relief. That is, if you have already failed to negotiate new repayment plans with your outstanding creditors; got rejected from a loan modification for your mortgage payments; got denied from borrowing money from your friends and family members; received little to no constructive advice from a credit counseling agency; or ruled out selling your property as a sustainable option; among other alternatives. This is all to say that the option of bankruptcy should only be considered if your debt is otherwise unmanageable and you require external help to relieve yourself of it.
Why should I speak to an attorney before declaring bankruptcy?
You must understand that while declaring bankruptcy comes with the ultimate benefit of offering you serious debt relief, there are also major, long-term, negative effects you must be made aware of. For one, your credit score may significantly drop in the aftermath of your bankruptcy proceedings. Subsequently, this may make it all the more challenging for you to obtain a loan for a house, car, or other high-value asset in the following years. It may even be difficult to rent a property, as landlords and management companies may not fully trust you after seeing your credit score and history with bankruptcy.
In the end, if you speak with a seasoned attorney, you can receive confirmation that declaring bankruptcy is absolutely necessary given your current financial standing, regardless of its potential cons. What’s more, they can assure you that you have indeed exhausted all other alternatives, as mentioned above, before proceeding any further. Lastly, they may determine whether the debts you have majorly incurred qualify for forgiveness through bankruptcy in the first place. For example, spousal support debt, child support debt, and student loan debt usually do not qualify for a discharge. So it may be pointless to undergo these proceedings if these debt types are your primary pain points.
We understand just how delicate this situation may be for you. If you need an emotional support system that doubles as a legal support system, look no further than The Law Offices of Allen A. Kolber, Esq, P.C. Retain the services of a skilled Rockland County bankruptcy attorney today.