Through bankruptcy, a debtor can stop wage garnishments, foreclosures, lawsuits and harassing phone calls from creditors. But not everyone qualifies to file for bankruptcy. Bankruptcy attorney Benjamin Ginter, who runs the Law Offices of Benjamin J. Ginter in Cranford, New Jersey, talks here about the factors involved to help you decide whether to file or not.
Over one million individuals and couples file for bankruptcy each year. The reasons vary from job loss, medical expenses, divorce to a small business failure. Whether or not you qualify for bankruptcy depends on a variety of factors. It may depend on how much debt you have, what kind of debt you have, whether you filed for bankruptcy previously within a certain number of years, why you filed for bankruptcy in the past, your income, and your other actions that led to this point.
Improving Your Credit Rating
Bankruptcy record remains on your credit for up to 10 years, but you can improve your credit rating along the way. The decision whether or not to grant you credit in the future is strictly up to the creditor and varies from creditor to creditor. No law prevents anyone from extending credit to you immediately after the filing of a bankruptcy, but creditors aren’t required to extend you credit.
To Consult a Professional
It is a good idea to speak to a lawyer to make sure you file for the appropriate chapter of bankruptcy, as filing the wrong bankruptcy chapter can be devastating. Although you may think your case is easy, if you file incorrectly, it can significantly delay your discharge, and in some instances, your case could be dismissed. Moreover, if you file for the wrong chapter, you could put yourself in jeopardy of losing a lot more than you think.
Whatever the reason for bankruptcy may be, my firm can help. I have been practicing consumer bankruptcy law for years and I know what it takes to help you wipe out your debts and start fresh. I can help you avoid the pitfalls that debtors and some attorneys fall into during this process.