Before you decide that you want to declare bankruptcy to get relief from your debt, of course you want to ask a solicitor how this process will affect you for the long-term. Your credit will be affected which means your ability to get a loan is affected, and in some cases, you may even be restricted when it comes to travelling. In addition to asking about how bankruptcy affects your credit and finances, there are some other questions you might want to ask a solicitor before hiring them to handle your case; note a few of those questions here and why they're so important.
1. Ask if they can assist you in repayment plans for your debt
If you're not quite ready to declare bankruptcy, you might ask a bankruptcy solicitor if they can help you with repaying the debt instead. Many such solicitors will actually work with your creditors to structure a loan repayment plan, and they may also be able to get some of your debt reduced. This can mean less debt overall and a more manageable way to pay it back than creditors offer you on their own. If creditors see that you are close to declaring bankruptcy and have spoken with a solicitor, they may be more willing to work with you to structure a new repayment plan through that solicitor.
2. Ask how to protect your assets before declaring bankruptcy
Some assets such as jewelry and real estate might be seized during the bankruptcy process in order to pay back your creditors. You may want to protect your assets from such seizure, but it's good to talk to your solicitor about how to do this. You don't want to be accused of hiding assets or of doing anything illegal in order to keep property that should be used to pay down debt, so always talk to your solicitor first before you do anything about assets or property you may have.
3. Ask your options if you want to end bankruptcy early
Typically you can end a bankruptcy early if you pay back your creditors in full or they accept a lesser payment as payment in full. If you're expecting to get a better job in the future or inherit money or otherwise be able to settle your bankruptcy early, ask your solicitor if that would work in your case and what you might expect so you would end your bankruptcy earlier than usual.