Filing for bankruptcy is an excellent option to have your debts forgiven and to begin again financially. Still, many would-be bankrupts lack a solid comprehension of the procedure. Getting a debt discharge is not as easy as completing some paperwork and waiting for a court judgement. Press the Restart Button on your financial life if you’ve been considering bankruptcy, and read these five items first.
Time Is Needed For The Process
The legal process can be finished in as short as one day in some instances, such as when dealing with minor claims courts. However, the process of bankruptcy courts is not the same as other courts. Chapter 7 bankruptcy is usually chosen by consumers looking for debt relief since it is an extraordinarily suitable and straightforward process. Regrettably, the typical time needed to complete a Chapter 7 proceeding might range from four to six months.
The second most common type of bankruptcy, Chapter 13, takes much more time to complete than the first type, Chapter 7. When filing for bankruptcy under Chapter 13, the debtor’s debts are reorganised into a payment plan, and the debtor may be able to have some or all of the debt dismissed. Because these payback programmes might continue anywhere from three to five years, the resolution of a case may take some time.
Filings For Bankruptcy Are Made Public
The general public can access the particulars of your bankruptcy proceedings as a result of the fact that court records are deemed to be a part of the available public record. Because they don’t make an effort to do so, most individuals don’t give this a second thought because they don’t check the bank accounts of people they know. However, if there are any elements of your financial life secret, you should keep this in mind since it is an important consideration.
Discharge Applies Only To Your Debts
Married people might file for bankruptcy separately or jointly, depending on their circumstances. Regardless of which course of action you choose, declaring bankruptcy will only discharge all the debts owed to those specific creditors named in the petition. If you have guaranteed another person’s obligation in any way, whether through cosigning or otherwise, the secured debt will ultimately fall on the person who provided the guarantee. If they do not, you are still responsible for paying the charge.
Collection Agencies Stop Communicating After Bankruptcy
The vast majority of people are aware that if their petition to file for bankruptcy is approved, they will be released from whatever current financial responsibilities they have. However, many individuals are under the impression that filing for bankruptcy immediately puts an end to all operations related to debt collection. After submitting your petition, the court will promptly issue an order to stay the proceeding. Even though this will not result in eliminating your debt, your creditors, including debt collectors, will be prevented from attempting to collect on it until your case has been concluded. This includes the ability to sue you for the debt.
Although it is not required, it is strongly recommended that you seek the assistance of a bankruptcy attorney. Skilled attorneys at the Law Firm will investigate the particulars of your case, review your legal rights and options with you, and assist you in filing for the proper chapter of bankruptcy based on the findings of their investigation. Get in touch with them as soon as possible by phone or online to set up a free consultation session.