If you find yourself in a lot of debt with no realistic way of getting out of it anytime soon, filing for bankruptcy is likely going to be your best option. There are multiple kinds of bankruptcy, including Chapter 7, Chapter 11, and Chapter 13 filings. Bankruptcy is not a simple process. You will need to do some research before you jump in and file. Here are three things that you need to know about bankruptcy law before you start the filing process.
The Types Of Bankruptcies
The first thing that you should know about bankruptcy law is that different types of bankruptcy are available. If you are seeking personal bankruptcy, you will want to look into Chapter 7 and Chapter 13. A Chapter 7 bankruptcy eliminates many of your debts but will require that you sell certain non-exempt assets. A Chapter 13 bankruptcy calls for a repayment plan that allows you to pay a portion or all of your debts off over three to five years. A Chapter 11 bankruptcy is most often used by businesses to restructure their debt while still operating.
Honesty And Accuracy Are Necessary
Filing for bankruptcy requires that you share information on your debt, income, assets, and other financial transactions. Providing this information can be difficult for those who are filing for bankruptcy. However, honesty and accuracy are vital when you are providing this information. Failing to fill out paperwork accurately during a bankruptcy filing can have some significant consequences. If your bankruptcy paperwork is incomplete, your case may be dismissed. If you misrepresent information on purpose, you can end up with criminal penalties such as steep fines and prison time.
Hiring A Lawyer Will Help
Bankruptcy law is more complex than many expect, and filing for bankruptcy is not a simple process. If you want to get a favorable outcome when filing for bankruptcy, you may want to seek out the services of a bankruptcy lawyer. Lawyers who specialize in bankruptcy will ensure that you are meeting deadlines, disclosing the right information, and filling out the correct paperwork for your filing. A lawyer will help you stay organized during your bankruptcy filing and increase your odds of getting the desired outcome.
Bankruptcy filings are often more time-consuming and complex than many expect. When it comes to bankruptcy law, there are a few things that you need to know. First, not all bankruptcies are the same, and there are different types of bankruptcy that you can seek. When disclosing information, failure to disclose everything accurately can lead to severe consequences. If you are struggling to file, hiring a bankruptcy lawyer will help.