Often, I am contacted by prospective clients asking if filing for bankruptcy is right for them. Ultimately, that is a decision that only the client can make, but in deciding whether or not to file, it is important to look at what types of debt the client has and will a bankruptcy filing help them with that debt.
Not all debt is dischargeable in bankruptcy and even the ones that are might have limitations. For that reason, the services of an experienced bankruptcy attorney can be invaluable. While credit card debt is generally dischargeable, as are medical expenses, domestic support obligations are not dischargeable while the ability to discharge educational loans and tax debt is severely limited and requires special action on the part of the debtor.
Further, correctly applying the exemptions can be the difference between keeping your property and losing some of it to the creditors. Self represented litigants often don't know how to apply the exemptions and can end up losing their property to a trustee sale. I am asked frequently if filing for bankruptcy will result in the person (or couple) losing their property. While it is possible that the client's property will exceed the exemptions and result in lost property, the exemptions are in existence to give the debtor the opportunity to start over while having assets to assist them.
The services of an experience bankruptcy attorney can be of great help to debtors and the cost is not as high as many think. The cost of doing your bankruptcy wrong, however, can be very high. For this and many other reasons, we strongly recommend speaking with a bankruptcy attorney before filing.
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