Bankruptcy cases have helped countless people with their financial problems. A lot of people are not familiar with it, and some deny this fact. If what you are facing right now are mostly debt problems, filing for bankruptcy could be your best choice. Some even consider it a good debt-relief option.
The different types of bankruptcy cases can enable you to repay your debts (and even have some of them discharged or forgiven). As such, early on, it is highly recommended to hire an experienced bankruptcy lawyer. He or she can explain to you each type and how to file a petition correctly. Knowledge of bankruptcy law will also come in handy as you fill out paperwork and bankruptcy forms.
The bankruptcy process
The process begins when a debtor files a declaration with the bankruptcy court. Generally, your bankruptcy petition must contain important details about you, such as your debts, total amount repaid and still owed, your monthly income, living expenses, any mortgage payment, and other monthly payments. This is a crucial aspect of the bankruptcy procedure. You must be completely honest about your financial status. Bankruptcy rules and state law are strict and you may be sued (and face fines or penalties) for providing fraudulent bankruptcy information. Bankruptcy fraud is something you would not want to get involved in.
Depending on the types of debt you have (and your capacity to pay off some or most of them), several bankruptcy options could work best for you. Consider the following before filing a petition in bankruptcy:
In Chapter 7 bankruptcy cases, a trustee would liquidate and manage the sales of your non-exempt properties (exemption rules vary per state). Your bankruptcy trustee will then use proceeds to pay back any creditor that must be paid, even with an on-going bankruptcy filing.
On the other hand, under Bankruptcy Chapter 13, you are to negotiate with your creditors and propose a repayment plan based on your disposable income. Your personal property will not be liquidated as long as you are proceeding with debt-repayment (until they are eliminated). Bankruptcy attorneys can help explain this in more detail. Such would also help stop foreclosure and wage garnishment, which are driving factors behind debt-settlement.
In Arizona, anyone can try to file for bankruptcy (whether a Chapter 7 liquidation bankruptcy or a Chapter 13 reorganization bankruptcy). However, you should think through and decide which is the most appropriate bankruptcy petition for you. This way, you get to file bankruptcy for the right reasons and you get more out of your filing.
Bankruptcy laws provide for different types of filings. Some prefer a Chapter 7 bankruptcy proceeding since it can have your credit card debt, medical debt, and certain types of tax debt discharged through a court order (but note that alimony, domestic support, and student loan debt are usually not part of a bankruptcy discharge). In contrast, some prefer declaring bankruptcy under Chapter 13 (and have their secured and even unsecured debts paid in full through a payment plan).
The services of bankruptcy lawyers are especially useful as you evaluate your financial condition and look into the most appropriate bankruptcy case. Other factors must be considered. Passing the bankruptcy means test, for example, is necessary when filing Chapter 7. Essentially, the means test (which looks into your income and the median income) will determine if you are financially qualified to declare under this bankruptcy case.
If you are having a hard time dealing with a debt or if you want to secure your financial future, hire a credible bankruptcy lawyer. He or she will assist you with bankruptcy forms. On top of this, he or she can help you have a fresh start at life after bankruptcy. For legal help on your declaration of bankruptcy, contact our law firm. Our experienced bankruptcy attorneys at WantAFreshStart, LLC will be happy to help.