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Bankruptcy is no joking matter. It is a long and involved process. The option to file for bankruptcy is comes from legislation that is designed to protect you. It is there for you to be able to get out from under your debts. However, it is not a reset button. There are debts that can't be erased. Also, bankruptcy stays on your credit report for a long time. It is important to talk to an attorney before filing for bankruptcy. Here are some things to think about. Debt that Sticks with You Did you know that not all debt can be erased by bankruptcy? A good example of this phenomenon revolves around student loans. If you declare bankruptcy, your student loan debt will not be taken from your name. Things like credit card debts, mortgages, and vehicle loans may be wiped clean, but any student loan debt will still be there when the dust settles. There are other types of loans and debt that avoid being wiped away by bankruptcy. It is important to discuss your situation with a skilled attorney. He or she will be able to tell you which loans will be wiped away by the process. Losing Your Home You will lose your home during the bankruptcy process. This may not be a concern to you, but it is something to consider. Your assets will be gathered by the bankruptcy trustee and sold off in order to pay your various creditors. If this is something that worries you, you may not want to file for bankruptcy. A lawyer can lay out what the likely results of filing would be. Credit Ramifications Your credit can be sorely damaged by this process. In some cases, your credit might actually improve somewhat. It is impossible to tell what your credit score will be after it's all over. However, some predictions can be made. If you have a lot of late payments, defaulted loans, and the like, there is a good chance that your credit score could improve slightly. Depending on the type of debt you have, many or all of the negative items could be included in chapter 7 or chapter 13 bankruptcy. If that is the case, all that will be listed on your credit report would be your bankruptcy. It is important to fin a good attorney that can help you through this process. Every situation is unique. An experienced lawyer will be able to give you solid advice about your options. Individuals and businesses with serious financial problems are often unaware of their full range of options. At The Schwartz Law Firm in Las Vegas, Nevada, our attorneys are dedicated to helping clients understand their choices. Whether a client ultimately files for bankruptcy protection or undertakes a real estate short sale, our lawyers can assist. http://www.schwartzlawyers.com/las-vegas/bankruptcy-restructuring/
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