When people find themselves in dire financial straits, they sometimes look to bankruptcy as a solution to their money woes. While this can be a useful debt relief option, it’s important to enter into the process fully knowledgeable of all potential ramifications. Frances H. Hollinger Attorney at Law knows that mounting debt can be a burden both financially and emotionally. When counseling clients in Mobile, AL, Attorney Frances H. Hollinger brings extensive knowledge of bankruptcy law to the table. 

Not All Debt Is Dischargeable

Many people believe that all types of debt can be discharged when filing for bankruptcy. However, this is not the case; certain debts (such as outstanding child support payments) can never be released. Additionally, there are certain debts that can only be discharged under particular circumstances. For instance, student loan debt can only be removed if you can prove significant financial hardship.

There Are Many Different Types of Bankruptcy

There are also many different types of bankruptcy to choose from. Chapter 7 and Chapter 13 can be utilized by individuals, while Chapter 11 is suited to businesses. Your current financial standing, your level of income, and the property you own can all affect the type of bankruptcy that is right for you.  

Bankruptcy Will Affect Your Credit Score

It’s best to consider all options before going through with bankruptcy. Your credit score will take quite a hit as a result, and it can take years to bring the number back up. A poor credit score will impact your ability to buy a home, get loans, and even secure gainful employment. Review other options, like debt consolidation, to determine whether they might be a better fit for you and your situation.

With the right assistance, you can move on from financial turmoil. Call Frances H. Hollinger Attorney at Law at (251) 943-9030 for more information on your debt relief options in Mobile. You can also visit her practice online to learn more about the legal services currently available.