Before you go ahead with your plans for a bankruptcy filing, certain aspects need serious consideration.
Before filing for bankruptcy, do understand bankruptcy-related laws and requirements.
Self-awareness is a must even when you are seeking expert legal aid.
A bankruptcy filing is sometimes complicated and confusing.
You must know the rules regarding bankruptcy filing.
Do you know there are different bankruptcy options for individuals?
- Most common amongst them are Chapter 7 and Chapter 13.
If filed in Chapter 7, he may lose a person’s property, and his debts may get wiped out in three to six months.
Chapter 13 files, a debtor needs to make a repayment plan depending on his income and stick to the program.
You can make payments in three to five years.
- Do detailed investigation: Bankruptcy should be filed only after a thorough examination of your financial documents and careful consideration of the situation.
- Avoid additional bankruptcy filing.
- Check eligibility: Every chapter has some requirements and eligibility criteria for a bankruptcy filing. You should make sure that you are eligible to file for a particular bankruptcy.
Read more about bankruptcy chapters and eligibility here
- Some debts like alimony, child support, and tax debts are not forgivable through bankruptcy proceedings, neither under Chapter 7 nor Chapter 13. If you want protection, you must make sure that your debts addressed the bankruptcy you’re filing.
- You should know what will happen to your property, like your home, car, or other assets, if you file for bankruptcy. There are specific exemption laws on your property that you should know. Chapter 7 bankruptcies protect only certain types of property by exemption laws.
- Bankruptcy may not wipe out your credit card debts if you provided wrong information on it or spent beyond your means.
- Make sure you protect your pension plans and life insurance policies from bankruptcy proceedings. State laws protect most of them.
- Be prepared for the invasion in your personal life.
There are few wildcard exemptions too, read them here.
Related Articles
Municipality restructuring in Chapter 9
Chapter 9 is a provision of United States federal bankruptcy law.It governs how municipalities can declare and resolve bankruptcy.
Modern Bankruptcy Laws Overview
Bankruptcy law were passed after realizing the need to have an effective system by which an honest debtor could get an opportunity to begin his life again.
Information on Bankruptcy Proceedings
Depending upon your entitlement, following is some information on bankruptcy proceedings will be carried out by bankruptcy court.
Eligibility for Chapter 12 Bankruptcy?
To gain Chapter 12 bankruptcy you need to have a regular annual income from farming or fishing. There are few other eligibility criteria's to consider.
Why we see repeat bankruptcy cases in Chapter 11
There are more chances of same company filing the bankruptcy cases in chapter 11 again and again. This is not really worth it. what is the need to repeat?
Local Affordable Bankruptcy Lawyer
Whether you are an individual or a business or an employee, you require proper guidance & advice to file bankruptcy. Connect with affordable Bankruptcy lawyer NOW!
Basics about Bankruptcy
You can file bankruptcy petition by yourself but though process is complicated & to assure that you are filing for right type of bankruptcy.
