To Avoid Bankruptcy Both Now and in the Future, Keep These Points in Mind
Though the bankruptcy process is ultimately designed to protect the essential assets of individuals who cannot repay their creditors, there are many reasons why it is often avoided and seen as a measure of last resort. Among these are an insolvency claim's affect on credit scores, future loans, and even employment within certain security and defense-related professions. To forestall having to declare bankruptcy, therefore, many individuals and businesses opt to reach debt settlements with their creditors, consolidate their various debts into one low interest rate loan, or hire a debt management firm to reduce penalties and interest rates for a fee. Unfortunately, though, after exploring all these and other options, an individual occasionally concludes that they cannot avoid bankruptcy.
When the moment comes to face this reality, however, it must be emphasized that such individuals are never alone, as legal consultation and representation is always available to help guide them through the bankruptcy process. It should also be emphasized that, at a fundamental level, bankruptcy is intended to allow individuals and businesses to protect the assets that will enable them to both survive and be able to rehabilitate from a financial standpoint.
Even after someone has successfully filed for bankruptcy, though, it's often forgotten that a key goal of their rehabilitation is to avoid having to declare insolvency again. The purpose of modern bankruptcy laws is to truly transform someone at an economic and financial level, after all, rather than simply punish them for their failure to repay loans. Beyond these more humanitarian reasons, however, it must also be noted that changes to bankruptcy law due to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 prevent any individual from declaring bankruptcy again after less than eight years. It becomes imperative, therefore, for anyone who has experienced insolvency to both learn and make efforts toward avoiding bankruptcy in the future.
Though our attorneys specialize in representation during bankruptcy filings, we also provide counsel during all phases of the insolvency process. This includes any legal consultation or representation that needs to be carried out while trying to avoid any form of bankruptcy or while re-filing a Chapter 7 Bankruptcy as a Chapter 13 so as to comply with the failure of a 'means test'. As always, everyone in our office is happy to meet with anyone who seeks to protect their financial future.