Are you contemplating bankruptcy as a way of overcoming what feels like an insurmountable amount of debt? If so, there are a few facts that you should know before deciding whether or not personal bankruptcy is the right debt relief solution for you.
Fact #1: Not All Debts Can Be Discharged
The ability to discharge your debts as part of a personal bankruptcy only applies to unsecured debts. These are debts that were not obtained through the use of any collateral, such as your home or vehicle. Unfortunately, for many people, this fact will eliminate their ability to discharge the majority of their debts since these debts are represented by a mortgage or car loan.
Before deciding whether or not to file for personal bankruptcy, it is important to take a close look at all of your debts and determine which debts may be eligible for discharge. If you find that you will still be left with a large percentage of your overall debt even after filing for bankruptcy, utilizing a different debt relief option, such as debt consolidation, may be a better fit for you.
Fact #2: You May Lose Some Of Your Assets
In addition to controlling which debts you are able to discharge, current bankruptcy laws also control which assets you are allowed to maintain during your bankruptcy. The bankruptcy laws that cover this topic are often referred to as property exemption laws and will clearly define the maximum value of the different assets that you are allowed to posses, including your home, vehicle, and cash savings.
If at any time during your bankruptcy these assets exceed the maximum value allowed by law, any surplus will be seized and used to pay a portion of your debts. In the event that any real property, such as your home, exceeds the value allowed by law, this property may be seized and sold to cover as much of your debts as possible.
Fact #3: Bankruptcy Is Not An Immediate Solution
While filing for bankruptcy can provide some immediate relief, such as putting a stop to harassing phone calls from your creditors, this process will not result in the immediate discharge of your debts. Instead, the process of going bankruptcy can take several months to complete. During this time, you may be required to make regular payments on your debts and will need to give the trustee in your case complete access to information regarding your income and assets.
It is only after this process is complete that any remaining debts that qualify for discharge will be discharged by the court.
If after reviewing the facts above, you still wish to pursue a personal bankruptcy petition, contacting a qualified attorney in your local area will be your first step towards successfully going bankrupt. To learn more, contact a company like Abakhan and Associates Inc.
You walk into your favorite grocery store and right away, you slip and fall only to sprain your ankle. You can't perform your job because it requires standing on your feet all day, which means that you can't make any money to support your family while your ankle heals. There was no warning that the floors were wet after being cleaned in the store – so what do you do? It's probably a good idea to think about filing a personal injury lawsuit. Of course, anyone with experience with a personal injury case will tell you just how important it is to work with an attorney throughout the process. I'd like to share insight I've learned through three personal injury cases that I myself have had to go through in the past. I think the information on this website can help people like you, who need some personal injury guidance.