Financial problems can come in many different types and severities. While individuals that are experiencing these severe money problems may desperately want an escape, it can be a common issue for people to be unsure of their rights when it comes to debts. In particular, the legal protections offered by bankruptcy are frequently not understood by those that would most benefit from these protections.

Myth: All Bankruptcy Filings Are The Same

There is a frequently spread idea that all types of bankruptcies will be the same. In particular, this can contribute to individuals assume that they will always lose their homes and other major assets. However, this is typically only the outcome from chapter 7 bankruptcies. In contrast, chapter 13 bankruptcies will typically only involve renegotiation of the debts that are in dispute rather than automatic liquidation of assets. To qualify for a chapter 13 filing, a person will need to demonstrate that they have a stable source of income that is sufficient to pay the majority of the outstanding debts if the payment terms are more favorable. As a result, those that file for this type of protection may have some of their debts forgiven by the court and the remaining payments will be lowered.

Myth: You Will Have To Retain An Attorney To File Bankruptcy

One of the most prevalent notions about filing for bankruptcy protection is that it will require you to spend money to hire an attorney. For those that are in extremely dire financial circumstances, it may simply not be possible to procure the funds to hire these professionals. Fortunately, it is possible for a person to represent themselves during the course of these filings. Due to the fact that much of the bankruptcy process will involve preparing financial documents and completing court petitions, it is entirely possible for a motivated person to learn enough about this process to represent themselves. If you have worries about procuring the needed documents for these filings, there are online providers that can provide these forms for you to complete. While these services will charge a fee, it will be a fraction of what an attorney would charge to represent you in these cases.

Filing for bankruptcy is a major decision for anyone to make as it can have long-term ramifications on a person's finances. However, those that decide to file for this protection may enjoy a new start that is free from most of their old debts. By understanding that there are different types of bankruptcy and the availability of services that help you to dodge the need to hire an attorney, you will be better prepared to decide whether to navigate through this process.

For more information, you will want to contact a company such as U.S. Records.