Not everyone qualifies to file for bankruptcy, says bankruptcy attorney Benjamin Ginter, who runs the Law Offices of Benjamin J. Ginter in Cranford, New Jersey. Here, he explains the factors involved to help you make an informed decision about whether to file or not.
People file for bankruptcy for a variety of reasons, including unemployment, sickness which may include large medical expenses, marital problems, or overextended credit. Bankruptcies remain on your credit for up to 10 years, but you can improve your credit rating along the way.
Whether or not you qualify to file 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 other actions taken by you that led to this point.
File the Right Chapter
It is always best to speak to an attorney to make sure you file for the appropriate chapter of bankruptcy, as filing the wrong bankruptcy chapter can be devastating. In some cases, if you file the wrong chapter, you could lose your home or other assets. That is why you always want to consult a professional.
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 bankruptcy chapter, you could put yourself in jeopardy of losing a lot more than you think. Our fees are reasonable, so it is worth paying a lawyer to make sure your case is successful. A qualified and experienced bankruptcy attorney will guide you every step of the way.
Future Credit
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.
