There are many questions about bankruptcy that you may get when considering filing for bankruptcy. First, you will need to understand how it works and what you can expect from your creditors after you file for chapter 7 or 13. Then you will want to decide if you want to go through this procedure alone or hire a Tallahassee bankruptcy attorney to assist you. These questions about bankruptcy should be answered before you even begin filing the bankruptcy forms.
One of the first questions about bankruptcy that you might ask is what happens if you declare bankruptcy while you have debts still remaining on your credit cards and other accounts. Once you file for chapter 7, which is also sometimes called bankruptcy protection, those debts become discharged. This means they are no longer your responsibility and can not come after you in any way, shape, or form. However, they are still discharged from your records, just not as completely as debts that are paid off, paid down, or forgiven.
Chapter 7 bankruptcy is a simple process. It begins by filling out the appropriate forms with your local Tallahassee bankruptcy court. The purpose of this is to let your creditors know what debts you have and how much money you have left in order for you to pay them. In order for your debts to be discharged, you must prove that you can pay them within a specific time period, usually less than five years. This means testing that they were aware of the debts that exist and that you have a good reason for owning them such as loss of employment or medical expenses that prevent you from paying your current debts.
What are some examples of debts included in chapter 13 bankruptcy? Some examples include personal loans, alimony, child support, and student loans. If you own some of these and have not paid them in full, they will be discharged as long as you can prove that you can’t afford them. In some cases, you may be able to prove that you won’t be able to make payments on these debts within the next five years if you go through a chapter 13 bankruptcy. If this happens to you, your case will proceed to judgment.
When is it advisable to file for chapter 13 bankruptcy? If you can’t meet the requirements of chapter 7, you should definitely consider trying to get out from under your current debt. This doesn’t necessarily mean that you should immediately file for bankruptcy, though. You should only do so if you’re experiencing serious financial hardship. Your repayment schedule, income, and assets will play an important role in determining whether you qualify for chapter 13 bankruptcy or if you should proceed with negotiation or arbitration instead.
If you think you might qualify for chapter 7 bankruptcy, you should contact us today to speak to an experienced bankruptcy attorney. We will assist you with the forms and help you decide if chapter 13 or chapter 7 is right for your circumstances.