What Happens When You File Bankruptcy?

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What Happens When You File Bankruptcy?

For persons having financial difficulties, filing for bankruptcy can be a way to help deal with their situation. Filing bankruptcy begins a chain of events that can have benefits for the person who is filing their case. However, many people don’t know what happens when you file bankruptcy.

When filing bankruptcy, the following changes occur:

Can Bankruptcy Proceedings Be Challenged?

Yes, bankruptcy proceedings can be challenged by the parties that are involved. For instance, a creditor may challenge the proceedings because they may want to pursue collections from the borrower. They may question aspects like:

Thus, a person should be sure that all the requirements for the bankruptcy papers are met. Also, they should file the papers in a timely manner and ensure that they aren’t missing any deadlines. The assistance of a lawyer is of much value when it comes to these types of issues.

What Is Discharge of Debt?

As mentioned, discharge of debt is available for certain bankruptcy filings. Discharge of debt is absolute and final, meaning the lender can no longer collect on a debt once it has been discharged through bankruptcy. However, not all debt is dischargeable, such as student loans, taxes, child support, and other items. These are called non-dischargeable debts.

Should I Hire a Lawyer for Help with Bankruptcy Filings?

Bankruptcy is a broad area of law and includes many different laws and statutes. You may need to hire a lawyer if you are considering filing for bankruptcy. Your attorney can advise you on the effects of bankruptcy and whether or not it’s advisable for you to file a claim. Also, your lawyer can assist you during court processes and provide representation during meetings.

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Last Modified: 05-14-2014 09:36 AM PDT

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