One of the most challenging financial situations to deal with is insolvency. Many people spend time in denial about their financial state, while others choose to file for bankruptcy alone. The problem with handling the process independently when you haven't done it before is that you might not fully understand bankruptcy law, which will complicate the process for you.
While there is no legal requirement to have a lawyer when filing, there are many benefits.
When debtors file Chapter 7 bankruptcy, there may be a small chance for the loss of property. Under Chapter 7, the bankruptcy court has the power to seize some of the debtor's property to use to pay creditors. Because of bankruptcy exemptions, however, most filers lose little to no property. Exemptions are offered to help filers hang on to as much property as possible. Rather than worry about what you might have to lose with a bankruptcy filing, learn a little about how the exemption system works.
The thought of fraud is probably very far from most bankruptcy filers' minds but it can happen nevertheless. Read below to find out about some of the most overlooked forms of fraud some filers may be accidentally perpetrating right before they file for bankruptcy.
Why Your Spending and Financial Transactions Matter
Once you declare Chapter 7 bankruptcy, everything you owe and everything you own comes under the control of the bankruptcy courts.
For folks who've never filed for bankruptcy before, there is a common assumption that people only do it when they're completely broke. Ask a bankruptcy lawyer when someone ought to file, though, and you'll get a much different answer. Let's look at when a bankruptcy attorney might tell you it's time to petition the court for relief.
You Need to Restructure Your Debts
Restructuring your debts in bankruptcy is often one of the most useful options available.
When individuals file for bankruptcy, they typically use Chapter 7 or Chapter 13 laws in order to do it. However, some people end up using Chapter 20 instead. Here is what you need to know about this unique form of bankruptcy.
What's Chapter 20?
You may find yourself in a situation where your financial debt cannot be resolved with Chapter 7 or 13 bankruptcy by themselves. Chapter 20 is when you essentially file for Chapter 13 and immediately use Chapter 7 rules to clear out your financial debts.