Most people seeking bankruptcy advice do not know a lot about filing for Chapter 7. Yet, they might need help eliminating their debts, and they turn to bankruptcy attorneys for assistance. If you are considering Chapter 7 bankruptcy, learning the following four things to expect might help you decide if Chapter 7 is right for you.
1. To Receive an Automatic Stay
One thing you should expect with a Chapter 7 case is to receive an automatic stay.
Chapter 7 bankruptcy is one tool for escaping the mountain of debt you may be toiling under. However, the bankruptcy court can only eliminate eligible debt reported on the petition. Anything not included on the list of creditors will continue to be owed after the case concludes, which can potentially inhibit your financial recovery. It's not the end of the world if you forget to include someone, though. Here are two things you can do if you find you inadvertently left a creditor off your bankruptcy schedules.
Debt can begin to overwhelm your life to the point that you can't pay everything you need to on time. Once you are late with bills and collectors start to call, the stress of your declining credit score and constant harassment only makes the problem worse. Bankruptcy can help you gain control over your finances so that you can move forward financially and get back on top of your finances. Even if you have debt you can't write off, the unsecured debt you can discharge will help reduce the amount you have to pay monthly on your overall debt.
Filing for bankruptcy is not something you should just rush right into, as it is a big event to go through, but it can be a great solution for many people. If this is something you are thinking about doing, there are three things you will need to do before you file your paperwork for bankruptcy.
1. Look into alternative options for debt-relief
When you are considering bankruptcy, it is likely because you have major amounts of debt and you do not know how to get out of the debt you have.
If you and your spouse decide to get a divorce, it's important to know that both your assets and your debt are considered marital property. If you live in an equitable distribution state, you'll get your share of both depending on what is deemed fair, while a community property state will divide everything in half. When there is significant marital debt and you know you aren't going to be able to pay it back, some careful planning may help you if you decide to declare bankruptcy.