What Happens After Bankruptcy?

Filing for bankruptcy in Washington DC, brings you face-to-face with several options. If you are successful, you will be able to pick up the pieces of your financial life and move on. Yet, going through the process is challenging, and can be emotionally draining. You will need the services of a bankruptcy attorney. In Washington DC there are many you can turn to. However, they will all tell you that filing bankruptcy is not without several potentially harmful consequences.

Types of Bankruptcy

In the United States, you could potentially file for one out of the four most common types of bankruptcies. These are:

* Chapter 7

* Chapter 11

* Chapter 12

* Chapter 13

Although these four exist, a bankruptcy attorney knows that in all probability, you will file for either Chapter 7 or chapter 13 Bankruptcy.

Immediate Consequences

While in both types of bankruptcy, you can escape the payment of certain debts – they are discharged – you cannot do so with other debts. Simply stated, you are responsible for paying back money owed for the non-dischargeable debts. This is something you must continue to do even after bankruptcy has been completed. In Chapter 7 Bankruptcy, this is a separate matter left under your control. In Chapter 13, however, it is part of the overall plan you submitted to obtain certain rights to proceed with the bankruptcy process

Other Consequences

It does not matter what type of the major two bankruptcy types you file. A bankruptcy attorney will assure you the following consequences exist and are very real. Some have a longer lasting impact on your life than others will.

* Credit Rating: One temporary effect is a reduced credit rating. After a few years have passed, if you continue to keep out of debt, your rating will improve.

* Loans: If you plan on taking out a loan after declaring bankruptcy successfully, you can forget it. Even loan sharks may be wary.

* Employment: The inability to find certain kinds of employment after bankruptcy is due in part to the employer checking on your credit rating.

* Accommodations: Many forms of housing do credit checks. If yours comes up bad, they may pass on you.

* Stress: Any form of bankruptcy – be it in Washington DC or Orlando FL is very stressful. It is not unusual to find families fall apart with divorces resulting.

Talk to a Bankruptcy Attorney

Bankruptcy exists to help people get out of debt and restore some form of equilibrium. Yet to every action, there is always a reaction. Talk to a bankruptcy attorney in Washington DC. He or she can help prepare you for the potential. Visit Andrews Law Firm for more information.

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