It is essential for every individual to know about how to file for bankruptcy. We will discuss what the process of filing can be like. Also, some tips on how you should proceed with seeking legal counsel if you share the same goal.
An examination of “How To File For Bankruptcy”
As a result of the current economic situation, many people across North America have difficulty paying their bills. Filing for bankruptcy may seem like an option that you should consider. We will now look at the “process” of filing for bankruptcy and what it entails.
- First, find a lawyer. The lawyer will be in charge of all proceedings; therefore, you need to make sure that you are working with a lawyer, experienced in this type of case.
- You will first meet the lawyer in an office, where your options and finances will be discussed. Bankruptcy cannot be filed without knowing where you stand financially and if there is a way to break the cycle of debts. A bankruptcy attorney will provide you with a list of potential options if his or her analysis shows that your debt can be reduced or payments stopped altogether.
- After following the advice of your lawyer, you will have to fill out certain forms and documents. This may include the required information about your assets, debts and income. In order to receive approval for your case, these forms would need to be submitted to various government agencies. If you decide to file for bankruptcy, different sections will be involved. You may have to deal with some or all of these sections depending on your personal financial situation and how much debt you wish to liquidate from your assets.
- First, the debtor must pass a means test based on their income, expenses, and whether they own their home. This is done to determine if the debtor has the means to pay their debts, as well as what would be left if they liquidated their assets. If a debtor passes or does not pass this step, then the lawyer will provide for other options.
- The lawyer will then ask you about your debts and how much you owe. He or she will also ask about various assets owned by you, such as your home and personal property. Based on the information provided, the lawyer will give advice on how to file for bankruptcy in order to avoid repossession of those assets and what can be done with them after being liquidated.
- Lastly, it is important to note that filing for bankruptcy can cause severe consequences in your life. Your credit will be destroyed, and you may be denied loans or credit cards in the future. Furthermore, even after you receive the discharge of your debts it will still take several years before your credit is restored.
It’s also important to note that not all debts can be discharged through a bankruptcy filing. In some cases, debts associated with student loans and child support will not be discharged and you will have to continue paying on these until they are repaid. Also, bankruptcy has severe consequences. Your credit will be destroyed, and you may be denied loans or credit cards in the future. Furthermore, even after you receive the discharge of your debts it will still take several years before your credit is restored.
So, there you have it. We hope that this article has helped you understand how to file for bankruptcy and proceed in your personal situation.