Should You File For Bankruptcy?
Filing for bankruptcy is often used as the last resort, but how exactly will you know that it is the time for you to use your last resort? Most people wish that filing for bankruptcy is an option which they would not need to consider in the future, but due to mounting debts, this can be inevitable.
Because of the financial crisis that even the worlds' economies are suffering from, it is important for every person to know about bankruptcy and its pros and cons.
Before you find a lawyer who will aid you in filing for bankruptcy, you first have to get as much information as you can about bankruptcy to see if this is really the best course of action to take.
Read a lot of different resources available online and offline.
You can also ask a lawyer about it, since they will be able to give you the necessary information that you need, hence assisting you in making the right decisions.
But then, remember that most lawyers charge for an hourly rate, so if you cannot afford one, better do the research by yourself.
In filing for a bankruptcy, remember that you have two bankruptcy options, the chapter 7 bankruptcy and chapter 13 bankruptcy.
The main difference is that in chapter 7, you get to eliminate almost all of your debts, but you also have to sacrifice much of your assets.
On the other hand, chapter 13 bankruptcy will let you keep all your assets, but you have to pay your creditors for a reduced amount.
Most people opt for chapter 7, though the new bankruptcy laws have made it harder for people to avail of the chapter 7 bankruptcy plan.
Learn about the laws in your state and find a bankruptcy lawyer that could help you.
Your lawyer will help you prepare your bankruptcy documents.
He will also help you decide which assets you want to protect based on the exemptions allowed in the type of bankruptcy that you chose.
You will then need to submit your documents to the bankruptcy court, and all collection activity will be commanded by the court to stop immediately.
You and your lawyer will meet the creditors within 20 to 40 days of your filing for bankruptcy.
This meeting usually lasts for just a few minutes, and this is a requirement for you to be able to complete your bankruptcy filing.
Since you already have segregated your exempt assets from your non-exempt ones, you have to sell your non-exempt assets to be able to pay your creditors for your outstanding balance.
This usually happens 30 to 60 days after you have filed your bankruptcy.
After paying all your debts according to the terms of your agreement, you will then be discharged by the court and all your former debts are erased.
You now have a clean financial slate once again.
Because of the financial crisis that even the worlds' economies are suffering from, it is important for every person to know about bankruptcy and its pros and cons.
Before you find a lawyer who will aid you in filing for bankruptcy, you first have to get as much information as you can about bankruptcy to see if this is really the best course of action to take.
Read a lot of different resources available online and offline.
You can also ask a lawyer about it, since they will be able to give you the necessary information that you need, hence assisting you in making the right decisions.
But then, remember that most lawyers charge for an hourly rate, so if you cannot afford one, better do the research by yourself.
In filing for a bankruptcy, remember that you have two bankruptcy options, the chapter 7 bankruptcy and chapter 13 bankruptcy.
The main difference is that in chapter 7, you get to eliminate almost all of your debts, but you also have to sacrifice much of your assets.
On the other hand, chapter 13 bankruptcy will let you keep all your assets, but you have to pay your creditors for a reduced amount.
Most people opt for chapter 7, though the new bankruptcy laws have made it harder for people to avail of the chapter 7 bankruptcy plan.
Learn about the laws in your state and find a bankruptcy lawyer that could help you.
Your lawyer will help you prepare your bankruptcy documents.
He will also help you decide which assets you want to protect based on the exemptions allowed in the type of bankruptcy that you chose.
You will then need to submit your documents to the bankruptcy court, and all collection activity will be commanded by the court to stop immediately.
You and your lawyer will meet the creditors within 20 to 40 days of your filing for bankruptcy.
This meeting usually lasts for just a few minutes, and this is a requirement for you to be able to complete your bankruptcy filing.
Since you already have segregated your exempt assets from your non-exempt ones, you have to sell your non-exempt assets to be able to pay your creditors for your outstanding balance.
This usually happens 30 to 60 days after you have filed your bankruptcy.
After paying all your debts according to the terms of your agreement, you will then be discharged by the court and all your former debts are erased.
You now have a clean financial slate once again.
