Deciding If To File Bankruptcy Is A Complex Matter – Know The Essentials Before Filing

Deciding If To File Bankruptcy Is A Complex Matter – Know The Essentials Before Filing People who even file bankruptcy, can’t avail themselves all the potential advantages it. While there’s no denying the fact that filing bankruptcy may affect an individual’s finances for a decade to come, for some, it is the only best option. Everyone’s financial circumstances, however, are unique to their situation. Determining if, how and when to file bankruptcy is a bewildering as well as a complex process; and the costs of filing when you must not, can be substantial. It’s very much of importance that you consult an experienced bankruptcy attorney to decide whether bankruptcy fits your situation. Recovery Law Group, a trusted consumer protection law firm tells you to contact our team of experienced and renowned bankruptcy attorneys for a quick and free bankruptcy consultation.

Benefits of filing for bankruptcy include: You are instantly allowed ‘automatic stay’ against the lenders. When you file bankruptcy, the court issues the ‘stay’ against all debt collection activities automatically. Well, this anyway does not mean all your debts are cancelled; it however strings up the debt collection proceedings 'til your bankruptcy case gets over or the automatic stay is withdrawn. It means halt to the:     

Letters or calls from creditors Wage garnishments Lawsuits on the dues House mortgage foreclosures Property repossession

If any lender attempts to collect debt from you even after the court has granted you an automatic stay, your attorney will then issue contempt of the court action against the creditor.

It will simply mean they cannot make any more debt collection attempt, penalize them or demand to pay you for the damages.

IMPORTANT NOTE*

An automatic stay has NO power over the following:     

Government tax audits Criminal proceedings Paternity establishment The collecting, modifying, or establishment of alimony or child support Co-signors or co-debtors

If you had already filed bankruptcy once in the past year, you could request the court for the extension of the first automatic stay.

If you have, however, filed bankruptcy a couple or more times within the similar cycle, the automatic stay of yours will not be counted if there’s no explicit order directed from the court.

Eliminable debts – You might be able to eliminate, or cancel your liability to pay these debts off.

An eliminable debt is the one that can be discharged by filing bankruptcy, and these usually include medical bills, utility bills, credit card debts, and personal loans.

Bankruptcy exemptions may allow you to hold onto your property such as house and car postbankruptcy. In case you “exempt” a property, it means it won’t be seized during the bankruptcy. Any sort of exemption is vital to both Chapter 7 and 13 bankruptcies. Certain exemptions secure upto certain amounts of an asset; at times the exemption includes the total value of a property. Besides, there are certain exemptions that apply to selective assets only, like a wedding ring, motor vehicle, while others apply to any asset you own.

Credit Score – Although uncertainties about a tanked credit status stop many from filing bankruptcy, because the bankruptcy information remain on their credit record for minimum 710 years. Many defaulters also start refining their credit scores post-bankruptcy. Once your dischargeable dues are discharged, this enables them to go ahead in life with a clean slate and start improving their credit.

Filing bankruptcy, however, when you shouldn’t, may call for a worse financial situation for one. Even filing too early may lead you to lose property what you could otherwise have saved, or that you are offered a different bankruptcy type that is not in your best interests.

Irrespective of what the reason are, even though bankruptcy is your best option, filing for it does have some real, eternal effects on one’s finances what you must consider prior to filing.

Recovery Law Group has been a guiding yardstick for thousands of families, individuals and businesses in resolving their financial challenges and re-living through bankruptcy. Call us now on 888-297-6203.