The Basics of Filing Bankruptcy

Introduction

 

The debt keeps piling up while you’re sinking with the feeling of anxiety and worry. The possibility of declaring bankruptcy continues to have greater chances of happening. Declaring bankruptcy can be a very confusing and complicated process. It is important to understand some things about bankruptcy to be prepared if it does become a reality.

 

Things to Know When Declaring Bankruptcy

  • Not a Quick Process
  • Finances Reviewed
  • Complicated Forms
  • Bankruptcy Discharge
  • Not a Cheap Process

 

Not a Quick Process

 

Declaring bankruptcy is not a quick process. It is important to understand that courts that deal with declaring bankruptcy are not the same as other courts. On average declaring bankruptcy can last at least four months. When declaring bankruptcy if it is classified as a Chapter 13 it can last anywhere between three to five years. A Chapter 11 bankruptcy can start at a minimum of two years and continue to last for a longer duration. If you want to obtain bankruptcy then you must be able to stick out the long process that may or may not occur.

 

Finances Reviewed

 

It is important to know that declaring bankruptcy gives fair game for finances to be observed and reviewed. You must be comfortable with talking about financial affairs and mistakes you have made financially during the whole process. At some point you will have to talk with creditors during a mandatory meeting. Questions can be asked by the creditors during the meeeting. Therefore, you need to be comfortable airing financial matters to strangers. You also must be completely honest. It is important to have a clear mind and be able to list all belongings, debt, and creditors associated with your current finances. Being dishonest or missing something could lead to an investigation by the FBI. Further actions by the FBI could delay or cause complications.

 

Complicated Forms

 

The forms when declaring bankruptcy is not necessarily straightforward. It is important to be prepared for complicated forms. Also, bankruptcy forms may ask questions that seem a bit tricky. Don’t let tricky questions make you second guess your answers. Therefore, make sure to give yourself enough time to fill out the forms and digest the questions being asked.

 

Bankruptcy Discharge

 

The discharge is a very significant aspect involved when declaring bankruptcy. Generally a discharge indicates that the individual that filed bankruptcy followed what was required under law. Therefore, the individual is relieved from paying any more on the financial debts. For more information regarding general discharge follow this link. Therefore, the discharge will personally only be able to protect the individual filing bankruptcy. It is important to understand that the lender still is able to try to collect debt from co-signers.

 

Bankruptcy Is Not a Cheap Process

 

Declaring bankruptcy can cost a great amount. Hiring an attorney to represent you can cost anywhere between several hundred to several thousands. Even with not hiring an attorney the fees associated with the bankruptcy process can add up to a great amount.

 

Conclusion

 

Declaring bankruptcy can be a very complicated and time consuming process. It is important to understand the basics to help decrease the amount of stress to follow. For more information regarding bankruptcy follow this link

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