Bankruptcy can provide temporary relief for persons or businesses that are in debt. Bankruptcy can allow debtors the time to reorganize their financial obligations into a more manageable plan, or in some cases eliminate certain debts completely. However, the bankruptcy process is extremely complex and requires a great deal of advice and planning. In addition, there can be some serious consequences that come with the bankruptcy process, such as the forced sale of nonexempt property or a large decrease in your credit score. Before filing for bankruptcy, you should consult an attorney or financial advisor to determine if there are any better alternatives (e.g. negotiating with creditors).
Bankruptcy is an extensive process and requires a great deal of planning and forethought. Before filing you should always address the following steps:
To begin the bankruptcy process, a bankruptcy petition must be filed with the court along with several other required forms that will require a great deal of information on your current financial situation. When completing these forms, it is essential to completely and accurately disclose all financial assets and obligations or there can be serious consequences. In addition, you will be required to submit a detailed explanation of why you have decided to file for bankruptcy. Many of these forms must be filed within (14) days after you file for bankruptcy and therefore it is recommended that you have these forms completed before you file the bankruptcy petition.
There are three important things a borrower should avoid doing before filing for bankruptcy.
Since these requirements are so complex, it is highly recommended that you hire an attorney before starting bankruptcy proceedings. An experienced bankruptcy attorney can help you file the required paperwork, negotiate with creditors, meet important deadlines, and represent you in court.
Last Modified: 11-02-2017 12:58 PM PDTLaw Library Disclaimer
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