Bankruptcy filings are increasing across the United States. Americans have suffered in the past two years. They are losing their jobs, foreclosing on their homes, racking up more and more debt, and now many of them are seeking the guidance of a bankruptcy attorney in their area.

Not knowing what to expect, some people fall victim to a bankruptcy attorney who pushes for bankruptcy even if it is not the best solution for the individual. Assuming you contact them with advance notice, they should explore all possible options before concluding that filing for bankruptcy is best.

Chapter 7 and Chapter 13 are very common forms of bankruptcy. Chapter 7 will liquidate everything you have to pay the debts. This is often a last resort. Chapter 13 bankruptcy implements a 3-5 year repayment plan for your debts. Once you have successfully completed your payments, you will be released from whatever is left. To qualify for chapter 13, you must have reliable income.

Your situation will drastically affect which type of bankruptcy makes the most sense for you. Someone with significant assets and a dependent job will probably do better with filing for Chapter 13. If your debt is unsecured, such as credit card debt, then Chapter 7 will be the best option for you.

There are also some situations in which bankruptcy does not make any sense. When your debt is made up primarily of child support, student loans, or owed taxes combined with a trivial amount of credit card debt, then bankruptcy probably doesn’t make any sense. This is because some forms of debt, such as student loans, are not eligible to be discharged through bankruptcy.

A quality attorney would not recommend bankruptcy in this situation. They would also suggest alternatives such as debt settlement, modifying your loans, or negotiating credit card debt payments. There is a chance that these alternatives could prevent bankruptcy from showing up on your credit report.

Many attorneys will offer a free consultation. During this time, you can get an idea of ​​how thorough the attorney will be with your case. This is a free way to determine if you have found the best attorney to protect your financial reputation.

Trusting your attorney is important to a good working relationship. Meet with several attorneys until you find one that makes you feel comfortable whether you have to file bankruptcy or not.