What Will Happen If I File For Bankruptcy?
You will file a petition in federal court after you declare bankruptcy. Your creditors will be notified of your bankruptcy petition and will be required to cease pursuing any debt you owe once it is filed.
The court will next ask you for specific details, such as:
- the total amount of debt you owe
- a comprehensive list of all of your debtors
- An accounting of all of your earnings
- a list of all of your outgoing expenditures
In bankruptcy court, you have the option of representing yourself. You may also engage a lawyer to act as your advocate and guide you through the complex process of what occurs if you file for bankruptcy. It may take a long time to get your debts erased or restructured in bankruptcy court. If you hire a lawyer, they will explain the timetable of your bankruptcy case to you.
The Benefits and Drawbacks of Filing for Bankruptcy
Bankruptcy may be a viable option when your debt surpasses your assets and capacity to repay your creditors. There are many benefits and drawbacks to filing for bankruptcy debt relief. The following are some of the benefits of filing for bankruptcy:
- A fresh start that may assist you in building a secure financial future
- The opportunity to keep a large portion, if not all, of your personal belongings and assets
- All debt collection efforts by your creditors will be forced to stop.
In addition to ending harassing phone calls and other debt collection tactics, filing for bankruptcy relief has certain drawbacks that you should be aware of. The following are some of the disadvantages of filing for bankruptcy:
- Bankruptcy will remain on your credit report for 7 to 10 years.
- When you can finally get financing after filing for bankruptcy, you may face higher interest rates.
- You may be required to attend court-ordered credit counselling.
- Depending on the kind of bankruptcy you filed, you won’t be able to utilize bankruptcy to discharge excessive debt for at least four to eight years.
Each person’s or company’s debt burden is unique, requiring thorough examination and a careful debt reduction strategy. Your lawyer can help you develop a plan to restructure, decrease, or eliminate your debt by taking a clear, objective, and thorough look at your financial position.
Select the Most Appropriate Bankruptcy Filing for You
We are honored to serve our customers in four major bankruptcy relief areas. Each type of bankruptcy, known as Chapters, has its own set of benefits and drawbacks. The four Chapters utilized to file for bankruptcy, where we assist customers in obtaining debt relief, are as follows:
- Chapter 7: Straight bankruptcy, in which all obligations are discharged in whole.
- Complex company bankruptcies involving debt reorganizations and restructures (Chapter 11)
- Debt relief and repayment arrangements for family farmers and fishers (Chapter 12)
- Chapter 13: Debt relief for wage workers, which may prevent foreclosures and other debt collection attempts.
When you decide to file for bankruptcy, your lawyer will assist you in determining which Bankruptcy Chapter is most suited to your financial circumstances. Bankruptcy is a complicated and time-consuming process. From the first petition through the final discharge, your lawyer can assist you in understanding and navigating the filing procedure.
Bankruptcy is a way to get rid of debt
When you file for bankruptcy, the court will grant you a discharge, which means you won’t have to reimburse your creditors for certain obligations. Your creditors will be unable to contact you or try to collect the debt after it has been dismissed. For any unsecured debt you disclose in your bankruptcy petition, a discharge is also permanent and final.
The length of time it takes to be discharged depends on the kind of bankruptcy you filed. A Chapter 7 bankruptcy discharge order may be completed in as little as four months, while a Chapter 13 bankruptcy discharge might take anywhere from three to five years.
You and your lawyer will both get a copy of your debt discharge order if a lawyer in your bankruptcy petition represents you. Your lawyer will explain what happens if you file for bankruptcy and which debts were dismissed due to your bankruptcy filing, as well as which bills you may still be responsible for.
Examine Your Bankruptcy Alternatives
Filing for bankruptcy protection will provide you with the financial relief you are entitled to. In Chapter 7 and Chapter 13 bankruptcy proceedings, our team represents individuals and small business owners. We can also assist with Chapter 11 reorganization bankruptcy and Chapter 12 bankruptcy filings for family farmers and fishers.
We can assist you with the petitioning and filing procedures. When you file for Chapter 7 bankruptcy, we can help you keep your assets. With complicated financial arrangements or very high debt burdens, we can even assist in restructuring your debt via additional bankruptcy cases.
Call BankruptcyHQ at (855) 756-2569 to talk with a member of our client intake team and find out what will happen if you file for bankruptcy right now.
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