How to avoid Bankruptcy – Information and Advice

Bankruptcy is tough. It affects your dignity, your emotional well-being and of course your finances. As crucial as it is to have emotional support from family and friends, it is equally crucial to employ the services of a sharp and experienced lawyer. If you have been declared bankrupt or you are filing for bankruptcy, the most important priority is to hire a sharp bankruptcy attorney.

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However, do not hire anyone from just another hole-in-the-wall law firm, these certain points will help you get a good lawyer:-

1. Do not delay in hiring the services of a good bankruptcy lawyer. Check for referrals and look for one within your own state. Laws differ, and different rules apply in different states. For example: if you are a native of Boston, look only for a reputed and tough bankruptcy Boston lawyer from a Boston bankruptcy law firm. A Boston chapter 7 & 13 bankruptcy attorney will not be too well-versed with the bankruptcy laws of, say Georgia.

2. The bankruptcy lawyer you employ has to safeguard your assets and protect your legal rights. If you have the option, hire someone who gets along fine with you. The purpose is to be comfortable with him or her, in order to be able to open up and be honest about your legal problems. This is crucial as he or she has to tackle your bankruptcy problems.

3. Bankruptcy is a serious issue, make sure the attorney you hire is well-versed and experienced with all the legal problems that will come. He should be a committed and tough lawyer, someone who can alleviate the harassment and negotiate with the debtors, the problems you have.

4. Find out how the lawyer and his firm will charge you. Before anything else, clear out and know about the charges of the services offered depending on the kind of the contract draft. A crucial factor you must take care of is their service charge fees and the process in which it will be paid.

It is a tough process but remember, you are not the first person to ever face bankruptcy. What do boxing legend Mike Tyson, Oscar winning actress Kim Bassinger, Grammy award diva Toni Braxton, business mogul Donald Trump, late president Abraham Lincoln and playwright Oscar Wilde share in common? And no, the answer is not oodles of talent. All of them have declared bankruptcy one time or the other. They have not been very good with their finances and the people who handle them. You can always learn from their mistakes and listed below are some points to remember in order to keep a steady mind are:

1. Remember that as hard and painful a situation as it may be, it is only a temporary, passing phase. Soon enough, everything will be under control.

2. Its a no-brainer but you have to take care of your finances or take help from reliable professionals. Hire financial and legal support. You need professional advice and help to tackle the bankruptcy filing process.

3. Let go of negativity and don’t become self-deprecatory. Remember that old adage, ‘its not how you fall, its how you get up’. Stop feeling pity for yourself and do something constructive. If required, it is suggested you meet a therapist.

4. Its never too late. So, be on the look out for new jobs, new opportunities to start afresh. The process may be long but the lesson you learn is worth a lifetime.

5. Make no errors in hiring a good lawyer. This point is mentioned repeatedly, as after you file for bankruptcy, it is the efficacy of the lawyer you associate with, that finalizes your future.

Do not make haste in choosing a bankruptcy attorney, as every step you take after this must be taken with great care. No mistakes can be allowed, make sure you too do not err in the lawyer you hire.

Sad it may be, but it only is temporary.
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About the Author: The article is written by Lee S. Kaplan, a Massachusetts bankruptcy lawyer who is also well-versed and experienced in real estate and divorce family law too. For all of your bankruptcy law firm requirements, contact the office of Lee S. Kaplan.

This is not a substitute for professional financial advice. Seek the guidance of a finance professional if you need help with financial advice.

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I have a confession to make. I’m in way over my head when it comes to debt. It’s my own fault and I admit that. For several years, I couldn’t afford to buy anything I wanted, so I paid with plastic. Little did I know that decision would come back to haunt me.

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I owe close to $20,000. My credit score is very high and I am very proud of that. I live paycheck to paycheck, not always have the slightest clue how I will pay my bills each month. And I’ll also admit that last year, when I heard that the laws for bankruptcy were changing, I contemplated filing.

I hated the mere thought of contemplating something that I knew would hurt my excellent credit. As the deadline for filing for bankruptcy before the new law approached, my husband and I debated for days. In the end, we decided to not do it. I realized that it was our own carelessness that had gotten us into debt and I should accept responsibility for it. Our best friends however, chose to file while only being in debt a few thousand. What I found exceptionally
irritating was the fact that right before they filed, they purchased two brand new cars and went on a cruise. Basically, since they charged the cruise, they didn’t pay a cent for it. To me, that’s the same concept as stealing.

The amount of people filing for bankruptcy in 2005 jumped almost 30% as people rushed to get their filings completed before the new laws took hold. Personal bankruptcy totaled almost 2.1 million across the country. Those statistics make it the largest number of bankruptcies filed in any 12 month period in our history. That’s scary. Think about that – 2.1 million people found themselves in financial trouble last year. Everyone who filed has their own reasons, whether it be credit card debt, job loss or medical bills. The list of reasons goes on for miles. As a matter of fact, high medical bills are the main reason for the large number of people filing for bankruptcy. Let’s face it, most people do not have adequate health care. All it takes is for someone to get hospitalized or ill and suddenly they find themselves in severe debt. That’s worse than scary, it’s sad.

I understand the need for the new laws, I really do. That doesn’t mean I agree with them in every case. The reason that laws are changing is because too many people were taking advantage of filing for bankruptcy. They’d charge up their credit cards with new furniture purchases, exotic vacations, and many things they absolutely had no true need for. Then, they’d file for bankruptcy and poof – their money woes were over. On the other hand, since the new laws have gone into effect, the people who face overwhelming debts that could not be controlled are facing more hurdles in order to get a fresh start. Is that fair? Of course not. But, as you know, it only takes one person to ruin it for everyone else. And lots of people did.

If the main reason for the onset of bankruptcy is high medical bills, why doesn’t the government take a look at altering those issues? If credit card companies are complaining that they don’t get paid when people file for bankruptcy, why give people such a high credit line? Sure, many bankruptcies could be avoided with some common sense usage, that’s for certain. But what about those who really are struggling? Who is looking out for them?

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