Most of us think of bankruptcy as a last resort. However, in many cases, it can be the appropriate move to make. Here’s what you need to know before you file for Chapter 13 bankruptcy in Norman OK:
Repayment Plan
A bankruptcy judge will come up with a repayment plan for you. You’ll need to pay back some, if not all, of your debts under the plan if you can afford them. That’s why you’ll need enough assets to qualify for this before you can file for one.
Credit Score
This will leave a stain on your financial standing and hurt your credit score. It will result in a drop of 100 points and even more, in some cases. However, while filing for a chapter 7 bankruptcy means the debt will stay on your record for ten whole years, a chapter 13 bankruptcy filing will only stay on yours for 7 years before it falls off the record.
Higher Interest Rates
For the next several years after you file for bankruptcy, if you approach any lenders, they will see this on your record. It naturally turns you into a credit risk so expect higher interest rates if you do decide to go to lenders for financial assistance, Wise Bread cautions.
Legal Assistance
Hiring a lawyer will be a tremendous help. Filing for Chapter 13 bankruptcy in Norman OK on your own could lead to mistakes and cause delays in your paperwork or processing. Hiring legal help means you’ll have someone to double-check your papers, fix any filing errors or mistakes and basically guide you through the entire process.
Bottom Line
Filing for bankruptcy is going to be challenging enough. By hiring a lawyer, you have someone to help you through this experience, reducing the stress and anxiety you feel all while ensuring everything proceeds without a hitch.
