Things You Must Know About Bankruptcy

Things You Must Know About Bankruptcy """For those contemplating bankruptcy, the decision is neither simple nor debtor-friendly. Although the process is not intended to be difficult for consumers, the majority of people lack the knowledge to guide them through it. When contemplating bankruptcy, a small amount of preparation can go a long way.

Qualification

Depending on your financial circumstances, you may seek total debt elimination in Chapter 7 or assistance with debt repayment in Chapter 13. First, recognize that not everyone qualifies for a Chapter 7 bankruptcy. The court will use your income to determine your eligibility based on your financial standing. If your income is less than the state's median income level, you may be eligible for Chapter 7 bankruptcy. If your income is greater than the state's median income, you are ineligible for Chapter 7 and may qualify for Chapter 13 instead.

The Specifics

Also, recognize the significance of your debts and assets to the ultimate outcome of your case. When filing for bankruptcy, you will be required to provide a comprehensive description of your financial situation, including a summary of your debts, assets, property, income, wages, and funds. This information is crucial for determining how your bankruptcy debts will be handled. Although you may fear losing assets or funds, you should never conceal information or make sudden transfers of assets or funds prior to filing for bankruptcy. This could be considered fraudulent and result in the dismissal of your case. Additionally, a substantial portion of your property and assets are protected by bankruptcy exemption laws.

Your Accountability

Once the paperwork has been submitted to the court, you will be required to take a few additional steps to conclude the filing. There are court filing fees that must be paid, but they are typically less than $275 depending on the type of case filed. Additionally, you must complete a 90-minute credit counseling course. This course will cover information regarding money management strategies and how to avoid debt problems. If you fail to complete either of these stages, your case will be delayed and may be dismissed. You are also responsible for maintaining contact with your bankruptcy attorney or trustee, particularly if your financial situation changes. If you inherit money, experience an increase or decrease in income, or liquidate funds, this information must be reported immediately to ensure the success of your case.

" - https://www.affordablecebu.com/