Are you looking to relieve your financial misery through the personal bankruptcy process, but have some concerns related to filing and having your claim accepted? If so then you will want to pay close attention to the following article, as we will walk you through the process from beginning to end.
More importantly, we will show you how to go bankrupt the responsible way and how to stay out of debt over the long term. Although the information we are about to provide is factual, it’s our opinion that every person should first meet with a qualified financial professional prior to making any firm commitments related to a specific debt relief strategy.
So, how exactly do you go about claiming bankruptcy responsibly?
Isn’t filing a claim a result of irresponsible borrowing and spending? It certainly can be, though bankruptcy is more often reserved for borrowers that find themselves down on their luck. Perhaps their financial struggles are a direct result of a job loss or maybe they are out of work due to a medical condition. The point is that the personal bankruptcy process should be used as necessary. It shouldn’t be thought of as some form of quick debt relief option.
Fortunately, the federal government protects itself from such abuse by implementing strict filing requirements. In fact, one of the first things you will be required to do before submitting a claim is to gather detailed information regarding your assets, debts and household income. The bankruptcy courts will examine this information to determine whether or not you qualify to file a claim.
Assuming you qualify to move forward under Chapter 7 or Chapter 13, you will be required to pay a filing fee and will also have to appear in court. If you file under Chapter 7, a portion of your assets will be liquidated to pay back your creditors. Filing under Chapter 13 will set up a repayment plan where you will be required to make regular payments to address your debt.
Consider setting up an initial consultation with a qualified attorney for more information on filing for personal bankruptcy. Most initial consultations are free and they can be a great way to learn a bit more about the filing process and about the individual attorney you might be working with.