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A bankruptcy lawyer will be able to guide you through your bankruptcy; the decision to do this will unfortunately, affect the lives of everyone concerned. The most recent changes in the law have meant there is more paperwork to complete when filing for bankruptcy, so the services of an attorney can be useful in understanding and preparing your petition. The end result is the same for most debtors and once the means testing and the credit counseling session are over, the vast majority of people end up filing exactly the same kind of bankruptcy petition that they would have before the law changed.

Insolvency laws in the United States have a certain bankruptcy protection built in, whereby the individual filing for bankruptcy will not, under most circumstances, lose his or her home. There are also additional items such as clothing, household furniture and personal property that are not included. It is not the intention to make the person homeless or lose their job.

Some States also have additions to the federal code but your bankruptcy lawyer will be able to inform you about these and how they will affect your bankruptcy period. Studies have shown that most people who are bankrupt are normal people who do not have an expensive lifestyle.

This is why protection has been put in place and how a legal representative will keep the creditors at bay. The unfortunate aspect to this is your credit rating will be affected and on your record for a decade. The truth is that your credit score is more greatly influenced by recent credit activities rather than on transactions that have occurred in the past.

You will notice within a short period of time after your bankruptcy has been filed that applications for credit are already forthcoming. Bankruptcy lawyers should warn their clients that many of the creditors who will solicit your business right after bankruptcy will attach outrageous fees and charges to these accounts. These mounting costs would put you right back in financial trouble. The answer is to only deal with reputable companies and only take on the credit you know you can comfortably live; always ensure that you pay more than the minimum payment required.

Whilst you continue to maintain and rebuild your credit record you may find that in less than four years your good credit record will have been re-established. Buying a house or arranging an unsecured loan after this short period should not cause you any undue problems even though your bankruptcy will be on your record for 10 years.

The credit industry would love for you to believe that only waster's become bankrupt. This attitude just makes ordinary people reluctant to file for insolvency when they need to and creates an unsympathetic attitude toward those who do. Bankruptcy is generally seen as a last resort, but as legislation continues to add changes, it will become harder for individuals to apply for bankruptcy.

The truth is that many people forced into this situation are hard working people that have just been unlucky; bankruptcy lawyers know that it is the law surrounding bankruptcy protection that is the only thing there to help them.

James Mayo

James Mayo is an independent financial reviewer who has many financial review websites including one on bankruptcy lawyers. For more information including financial products visit http://creditcardbankruptcy.oureview.org