Are You Filing for Bankruptcy?
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How Do I File for Bankruptcy?
Filing for bankruptcy generally begins when you file a request with the court. This will set in to motion various steps that will begin to affect you, your credit, and other parties such as lenders and mortgage companies. Filing for bankruptcy may seem like a drastic measure, but it can often be done strategically to help a person get obtain a new financial direction at the proper time.
What Are Some Issues to Consider when Filing for Bankruptcy?
You may wish to consider certain issues when filing for bankruptcy. For instance, you may need to understand issues like:
- Types of bankruptcy: Consumers usually file under Chapter 7 (liquidation bankruptcy) or Chapter 13 (reorganization). There are different consequences and benefits for each type.
- Automatic stay: Filing for bankruptcy usually results in an automatic stay on other proceedings and on credit collections. This means that lenders and creditors generally can’t collect payments from you during the bankruptcy process.
- Dischargeable debt: Certain debt can be cleared or discharged during bankruptcy. This often helps the borrower to get a "fresh start" financially. Not all debt is dischargeable however.
Bankruptcy proceedings may cover a number of these issues as needed. Some bankruptcy processes are more complicated than others, depending on the assets and debt of the party filing the claim.
How Else Can Bankruptcy Affect Me?
Filing for bankruptcy can have effects in many other areas of life. For instance, a bankruptcy filing can affect child support payments in many ways. This is true for either the party paying for child support or the party receiving the child support.
Bankruptcy can also affect other financial issues, such as mortgage arrangements, car payments, business matters, and spousal support.
Do I Need a Lawyer for Help with Bankruptcy Proceedings?
Filing for bankruptcy is a major decision and should be approached with careful thought and direction. You may wish to hire a bankruptcy lawyer if you need guidance and assistance with the filing process. Your attorney can help review your claims and assets and will be able to provide legal support for your situation.
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Last Modified: 12-30-2015 04:00 PM PST
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