Before you decide that bankruptcy is what you need, there are many things you need to consider. You are likely to already have misunderstandings of what a bankruptcy can and cannot do for you. The following are just a few things you should know about bankruptcy that you may not be aware of.
You will need to qualify for a bankruptcy
A few years back, congress decided to tighten the bankruptcy laws because they believed too many people were taking advantage of these laws to get out of the responsibility to pay back their debts.
One of the first questions people often have for a bankruptcy law attorney is about how hard the process is likely to be. Lawyers frequently respond with the answer that it will depend on a few things, so let's look at what three of the biggest factors might be.
Bankruptcy law presumes someone is eligible to file for relief if they make half of their state's median income or less per year.
No one wants to go through bankruptcy, but it is a process that many people consider when they're struggling with their finances. You may feel like your current bills and previous debt keep piling up to the point where it's impossible to keep up with it all. When you're drowning in past debts, you'll get into a deeper problem the longer you let it go. If you're considering filing for Chapter 7 bankruptcy law or even Chapter 13, or if you want to explore other legal options to get ahead again, it's worthwhile to invest in a bankruptcy attorney.
When you are filing for bankruptcy, its essential that you list all of your creditors. However, a common problem is for a debtor to not remember all of his or her creditors. Often, when drowning in debt, its easy to take on a lot of debt from a range of creditors, so you'll need to have a plan for locating each creditor.
Write Down Known Creditors
Begin by writing down a list of known creditors.
Once you make the decision to file for a chapter 7 bankruptcy, you should begin to look forward to a better financial future. Unlike the chapter 13 debt reorganization plan, a chapter 7 bankruptcy can be completed in a fairly short amount of time. In most cases, unless you have extensive complications, your bankruptcy will be final in a few months' time. To learn how you should proceed in your bankruptcy case, read on.