Everything About How To Filing For Bankruptcy
bankruptcy filing, chapter 7 bankruptcy, chapter 13 Bankruptcy if you are faced with the problem of ever increasing debts then without worrying your first action of plan should be filing bankruptcy with respect to the bankruptcy law in the court. How to file a bankruptcy? Before filing a bankruptcy, be sure that you have no other option left because bankruptcy remain in your want records for at least 10 years. Left with no. option you should then decide whether you need any assistance or you can manage it yourself? How to file for bankruptcy is a highly legal matter. Many sensitive aspects are associated with it.
Is advisable that you consult a bankruptcy lawyer or hire attorney who can guide you throughout so it the process of filing bankruptcy. Search for attorney who has a good experience in bankruptcy matters. Bankruptcy attorney will help you in all the paperwork, called your petition to the court. How to decide whether to opt for chapter 7 or chapter 13 bankruptcy? Evaluate your income of the past six months. If the median income calculated over last six months is below the decided median income (may differ from state to state) then you qualify for chapter 7 bankruptcy and you can file bankruptcy under chapter 7 this comparing of income with median income is called means test. Those who are not able to pass a means test have to go for chapter 13 bankruptcy. Evaluation of assets.
You have to go through your asset details. If your assets are exempt then you can file bankruptcy under chapter 7 without losing any of the assets. But if the assets are not exempt then filing chapter 13 bankruptcy would be appropriate. Classify your debt into secured debts (mortgage, car), and unsecured debts (medical, credit cards). If the amount of the unsecured debt is more than the client’s annual income, then Chapter 7 bankruptcy may be appropriate. If a client has a high tax or other unsecured priority debt, then Chapter 7 may not be a feasible option only if the debt what incurred and assessed more than three years before filing bankruptcy. In this case a chapter 13 bankruptcy may be a more appropriate for restructuring your taxes. Evaluate the financial dealings in last 1 year. Too many financial affairs like transferring large amount of money to family members, transferring assets to family of members can cause problem in filing a Chapter 7 bankruptcy. Utilize the help of your bankruptcy attorney filing a bankruptcy can be exhaustive process. Having a good bankruptcy lawyer is very important. And more important you should provide him with all the details without any leftovers. The trustee allotted to you by the court wants to check all the details you have mentioned in your petition. Disclosing the fact of your bankruptcy to your creditors is mandatory. You should remain patient throughout the process as it is very extensive and stereotypical.