Coming to the decision that you need to file for bankruptcy protection can be a major point in your life. While bankruptcy protection can offer valuable protection to those that are in serious debt, there are many individuals that will not be prepared for what applying for this protection will involve.
Be Mindful That Your Initial Meeting May Be Somewhat Short
When you are evaluating whether or not to apply for bankruptcy protection, you can schedule a consultation with a bankruptcy attorney. These meetings can give you an opportunity to learn more about the bankruptcy options that are available to you – as well as what you should expect from this process. While these meetings can be extremely insightful, you will have a limited amount of time to talk to the attorney about your case. For this reason, it will be necessary to take some time to prepare for this meeting to make sure that you are able to ask all of the questions that you may have before the time for the consultation runs out.
Avoid Assuming That Bankruptcy Always Means A Total Loss Of Assets
A person may avoid filing for bankruptcy due to the belief that they will lose most or all of their assets. While this can be a popular conception that people have about bankruptcy protection, it is not what most individuals should expect to encounter. Even in a situation where a person is forced to file for bankruptcy protection that requires them to liquidate some of their assets, they will be unlikely to lose all of their assets. Other individuals may qualify for bankruptcy protection that allows them to restructure their debts so that they can pay them more easily. Understanding the range of bankruptcy protections that are available can allow you to make an informed choice as to what you should pursue.
Understand When Your Bankruptcy Protection Takes Effect
Unfortunately, individuals will often be driven to bankruptcy protection due to aggressive collection actions by their creditors. As a result, these individuals may be very interested in knowing when their bankruptcy protection will begin. While some will assume that this protection will only take effect once they have completed the bankruptcy process, this is not actually the case. In reality, bankruptcy protection can begin once the process has been started with the courts. This can be an important fact to know as the bankruptcy process may take months to complete – which could leave you vulnerable to collection actions by your creditor if the protection waited until the process was complete to take effect.
For more information about bankruptcy protection, contact bankruptcy attorneys in your area.