If you’re thinking about declaring bankruptcy in order to obtain debt relief, the process can seem scary and complicated. However, with a little bit of proper planning and some good advice from a competent bankruptcy lawyer, the process can become much easier to understand. What exactly do you have to do to declare bankruptcy?
Despite what many people think about bankruptcy, this process is designed to give honest people a second chance by helping them deal with overwhelming debt. Bankruptcy is not about helping lazy people or deadbeats who simply don’t want to pay their bills. If you’ve ever been in difficult financial circumstances, you know that sometimes you can do your best and still end up in financial disaster.
Before you make the decision to file personal bankruptcy, you need to realize that certain kinds of debt obligations will not be easy to get rid of. These include criminal fines, child support and alimony, and (in many cases) federal income taxes. Unfortunately, student loans also fall into this category.
One of the most powerful tools in your bankruptcy arsenal is known as the automatic stay. When you first file a petition with the bankruptcy court, the judge will institute an automatic stay to put all of your financial obligations on hold. What exactly does this mean for your financial future?
Dealing with bankruptcy may bring on a sense of Catch-22 for some people. If you need to file for bankruptcy because you have no money, how do you expect to pay for the attorney who will represent you? Furthermore, if you are unable to file yourself for some reason, how can you file for bankruptcy without a lawyer, whom you can’t afford? The notion of finding a firm with a concentration in bankruptcy law may intimidate some people, and perhaps even dissuade one from looking into filing at all as an option. It’s important to know that one shouldn’t feel ashamed about considering bankruptcy – many factors come into play that you can’t necessarily control, and if you have looked into the option you may want to research how to handle fees.
Nobody wants to contemplate serious financial problems, especially having to file for bankruptcy in order to find some level of debt relief. Once you have the necessary paperwork filed and your case is closed, you then have the opportunity to start fresh and work toward rebuilding good financial health. If you have had to sell a car or house in order to satisfy your debts, you may be curious how to go about finding a new place to live. If you wish to buy a house, how can you obtain a loan to buy one given your recent credit history. A bankruptcy will stay on your record for about ten years – what if you don’t want to wait that long to buy?
Yep. You read that right. Filing for bankruptcy will improve your sex life.
An individual has an option to file a Chapter 7 or Chapter 13 personal bankruptcy. In Chapter 13, an individual can repay creditors using one’s earnings or salary for up to five years before being discharged from one’s debt, either fully or most of them. On the other hand, the non-exempted assets of an individual will be liquidated to pay off debts in Chapter 7. An individual who has filed for Chapter but cannot complete the payment plan may be allowed to convert to Chapter 7.
Unsecured debts are debts that are owed on most credit cards, like MasterCard, Visa, and even gas cards. This means that when the individual files for Chapter 7 bankruptcy, these unsecured debts will be discharged, or wiped out, in the bankruptcy. It doesn’t matter if the cards were used for household goods or business expenses.
When it comes to filing bankruptcy, many debtors fear the dreaded meeting of creditors. I don’t think that individuals filing for bankruptcy are worried about meeting the creditors as much as they are meeting the bankruptcy trustee. Everyone filing Chapter 7 bankruptcy will have a trustee appointed to oversee the entire process.
