Bankruptcy - A Tool to Rebuild Credit...

...But You May Lose More Than Your Debt

When declaring bankruptcy, a planned timeline needs to be established several months before the actual bankruptcy papers are filed with the court system. Your qualified bankruptcy attorney should be able to walk you through this timeline during the initial consultation. During this consultation the attorney should inform you what bankruptcy "isn't" and what it "is" able to do for you, as well as any consequences.

Bankruptcy is designed to forgive most debt from revolving lines of credit. It won't eliminate every type of debt that an individual owes. Federal subsidized student loans are one example. This type of debt is excluded from bankruptcy protection. Mortgages are another type of debt that will not be eliminated, but with assistance from a qualified attorney or sometimes the debtor themselves, a forbearance may be arranged to allow a temporary delay of mortgage payments that are due.

Some bankruptcy candidates may think that several months before the official bankruptcy process begins, if they will definitely be declaring bankruptcy, they should take the maximum cash advance that each and every credit card they possess. Depending on the individual situation, doing so can complicate matters and is therefore not a wise course of action. In other words, do not do anything fraudulent, deceptive, or that can be viewed as "trying to get one over" on the banks.

Any vehicles or real property should not be sold or purchased some time before or even after bankruptcy is declared. Banks and other lending agencies are well within their rights to review many financial transactions that occur pertaining to an individual which has already declared bankruptcy. Should any real property or vehicles change hands, lenders may demand any monies received from the sale of property be forfeited and handed over to pay off any debts.

Like most legal situations, there is a window of time where reviews can take place after bankruptcy has been declared. As always, consulting with an attorney specializing in bankruptcy and other financial matters is always the best course of action and will save a lot of grief while trying to rebuild a positive credit history.

For more information about bankruptcy, there are several excellent sources available online. One great source is the Kanzer Law Firm, at http://www.kanzerlaw.com. Kanzer law specializes in helping people recover from financial disaster and protect their assets from creditors.

Proactive Bankruptcy and Debt Consolidation Planning with a Qualified Bankruptcy Attorney

Any attorney can provide a wide range of legal services to anyone. This doesn't mean that every attorney is specialized to do so where you need it most. The majority of lawyers and law firms specialize in a just a few areas of law. A patient wouldn't go to a dentist to have heart surgery so why should an individual in financial trouble go to an attorney who doesn't specialize in the bankruptcy and financial services? Unfortunately, the majority of individuals and families aren't proactive when retaining the services of an attorney and just end up selecting an attorney at random when calls and harassment from collection agencies become too much and foreclosure is imminent.

With our economy in shambles, satisfied bankruptcy clients are easy to find for good word of mouth reference. Much like finding a doctor, be proactive when selecting an attorney. Begin looking for an attorney before you absolutely need one. It is important to consult with a bankruptcy attorney several months before actually declaring bankruptcy. Generally, attorneys offer free consultations for almost every situation. This free consultation is for preparing your game plan so that the majority of possessions and property may be kept. Even some credit cards may be retained to help in rebuilding credit worthiness after bankruptcy has been declared. The only initial cost of a free consultation is a little personal time.

Once a lawyer or law firm has been found that meets a client's initial expectations, inquire as to the other services offered. Many attorneys that handle bankruptcy and other financial matters often handle real estate law, wills, and family law as well as estate and financial planning. Some may even be a C.P.A. (Certified Public Accountant) and offer auditing, income tax preparation, and other financial services. All of these specialties tie in together when declaring bankruptcy.

It is often most convenient for a "one stop shop" approach for the majority of an individual's or family's legal needs. At the very least, every individual or family should speak with an attorney that they are comfortable with and carry their business card in their wallet. It will come in handy if or when it comes time to take the next step. Think of it as just a little extra insurance. One may never need it, but it is nice to know one has it.

For more information and guidance about debt recovery, foreclosure avoidance, and bankruptcy protection, visit http://www.KanzerLaw.com. Among other professionals, Kanzer Law specializes in helping individuals protect their assets from creditors during times of personal economic crisis.