People who have debt problems very often give in to unsupported myths and hearsay without ever taking the time to truly understand the law, and the implications of bankruptcy. So those people who have huge debt need to be aware of a couple major factors before running off to file bankruptcy on a whim.

It's common to hear that bankruptcy will affect your chances of getting a line of credit. In this market, many lenders are willing to take just about any chance due to the fact that the market has become so competitive. Naturally, the interest will probably be much higher, and the amount of credit much lower, but regardless, it is possible.

As for the chance at owning a home, it's been known for lenders to approve a mortgage in as little as 18 months after a person has filed for bankruptcy.

Here's how your bankruptcy can affect you and your money. Most of the savings and pensions are exempt in bankruptcy from your estate. Therefore these accounts are safe and will not be liquidated. If you have tax liens that are not paid, those are usually not forgiven. This is something that you should think about before filing for bankruptcy.

You should look for a a good financial adviser or credit counselor to help you form a financial planning strategy.

It's not easy to decide to file for bankruptcy. You've probably gone through a lot just trying to avoid it at all costs if you're like most people, but there comes a time when even trying to consolidate debt does not work. After every other option seems to be exhausted, it may be time then to find a good bankruptcy lawyer.

The best way to find a bankruptcy lawyer is through a referral. Perhaps from family members or friends who have done the same. They should be able to give you a good recommendation since they've gone through it themselves. If you have seen first hand through these people how the lawyer has conducted himself competently, then you can probably feel good about obtaining him for his services.

If there is nobody that you know to recommend a lawyer, or if you just don't to go asking around, then the local yellow pages under ‘attorney' should help you find someone in your area rather easily. Be sure that the lawyer you choose can handle your case without the burden of an already tight schedule and heavy case load.

Once you schedule a consultation don't be afraid to ask him questions. He's there to help you, not scold you as it sometimes feels. Give he or she the details of your case, let him address the questions you might have, and find out what his fees are.

Now you're on the road to fixing your financial situation.

If you don't have a bankruptcy lawyer in mind, you may want to consult the yellow pages in your phone book. Bankruptcy lawyers are listed in a special section under “attorneys”. When choosing a bankruptcy lawyer, you need to keep a few things in mind. You want to choose an attorney who does not have such a heavy case load that he can not handle your case. Try scheduling an initial consultation. When you meet with your potential bankruptcy lawyer, make sure to ask questions. Take time to discuss your case, address any questions you might have, and discuss his rates and fees.