A Closer Look At How To File For Bankruptcy

May 14th, 2014 | By | Category: Info

The bankruptcy laws have become so complex that consumers shouldn’t attempt to file by themselves. It’s a very risky process to attempt to do on your own. Since 2005, there is a complex’ Means Test’ required, government-approved credit counseling, as and other changes which made the filing of Bankruptcy much more complicated. Even if you eventually file pro-se (representing yourself) consult an attorney and ask questions about whether bankruptcy is the right option for you.

You want an attorney that is there to solve your problems and sees bankruptcy as either of the alternatives. This is particularly critical if you own assets (Home, Car, Cash) that have to be taken into account and your debts are substantial and varied. If the attorney’s recommendation is always to file for bankruptcy, ask what the benefits are and the costs.

But Wait, There’s More About How To File For Bankruptcy

Bankruptcy courts have made several rules and provisions to help individuals as well as companies regain the stability of their existence by clearing severe debt burdens. Personal bankruptcy is a process that can be used only by individuals to legally declare their incapability to pay off debts. There are two types of personal bankruptcies, namely chapter 7 bankruptcy and chapter 13 bankruptcy.

Chapter 7 bankruptcy has been designed for individuals who’ve non-exempt, unsecured assets that can be seized by the tribunal to make payments to the creditors. However, in most cases it is shown that people filing for chapter 7 bankruptcy don’t possess any unsecured properties that can be liquidated by the european court for making debt payments.

QUESTION: filing bankruptcy?
I've been thinking about filing bankruptcy but I've been told that we make too much money to file. Is there any truth to that?

  • Filing for bankruptcy should never be an easy option. While it is true that if you make "too much" money, you will be steered from Chapter 7 to a Chapter 13, you can never really make too much money. To determine what chapter you will need to file, your attorney will do a "means test." The means test takes your household income, size, state poverty guidelines, and expenses into consideration. I have had clients who have been able to "pass" the means test and go into Chapter 7 even though they were high income. I've also had lower income clients who failed the means test and had to file Chapter 13. I would advise you to contact some of the attorneys in your state. Most reputable bankruptcy attorneys will offer a free consultation to determine whether or not bankruptcy protection can benefit you – and exactly what kind of protection it can offer. Best of luck!

  • You may make too much for a Chapter 7 bankruptcy. Chapter 13 (debt reorganization) is then your only option.

  • Don't do it! I filed before. It was awful! They take away your whole life. Do yourself a favor and do a debt consolidation. Stay away from banruptcy.

  • Chapter 13 bankruptcy is ideal for those who despite their debt burdens make a comfortable earning. These individuals are given by the court with a convenient payment plan that is predicated on their affordability. The payments have to be made over a definite period of time, and that, after the individuals have made all their essential monthly payments.

    Cant Get Enough of How To File For Bankruptcy? Want More??

    When I meet with clients, it is usually the case that their paperwork, be it bills, taxes, etc. aren’t organized in any good manner. This makes it far more difficult and time consuming to assess a client’s case. Therefore, it’s a very strong suggestion to collect all statements from bill collectors. Go online and get complete addresses of creditors who may have stopped billing you. Check the balances at financial institutions where you bank. Look at your recent tax returns to provide your gross income over the last three years. Basically, get to know your assets and liabilities and ask them written out and organized for your lawyer to prepare your case.

    Make sure to be fully candid with your lawyer. Your lawyer cannot give you good advice if he or she does not know all the facts.


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