Bankruptcy law can be used as an important debt solution. A lawyer or bankruptcy attorney will help with bad credit and your personal bankruptcy. A bankruptcy filing will not avoid bankruptcy but you will get out of debt with a Chapter 7 bankruptcy.
The bankruptcy law changed in 2003 and with it the consumer's debt solution will never be the same for lawyers or even a bankruptcy attorney. It is now much more difficult to do a bankruptcy filing, and indeed, most consumers cannot meet the new criteria set out in the new laws, whether they are filing Chapter 7 or 13.
Most consumers will find themselves forced into a Chapter 13 bankruptcy debt reorganization instead of a Chapter 7 bankruptcy. In a Chapter 7 bankruptcy, a consumer’ debts are completely wiped out; in a Chapter 13, the consumer finds themselves in a court-ordered debt solution consisting of payments over 3-5 years.
Speaking once with a personal bankruptcy attorney or lawyer, I was told that the bankruptcy legal profession is not happy with the new bankruptcy law. The law makes the attorney liable for any misstatements or false statements. This makes it much more difficult for the average person to get out of debt safely.
There is no doubt that bad credit is not cured by bankruptcy filing, and is in fact caused by personal bankruptcy. But sometimes, it's the only way out. A Chapter 13 bankruptcy filing is not as common as Chapter 7 bankruptcy, and most people cannot afford the Chapter 13 way to get out of debt.
The decision to go through with or avoid bankruptcy is a tough one. Sometimes it is the only debt solution in order to get out of debt. Bankruptcy law is very complex - a bankruptcy filing should definitely not be handled on your own - get a lawyer or attorney to handle it for you. If you go the personal bankruptcy route, you will have bad credit whether or not you go Chapter 7 or 13.
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