Statistics reveal that last year there were 790,830 bankruptcy filings, which marked the smallest number of bankruptcies that have been filed in years. Even though this number has decreased, the bankruptcy rate in our country is still high. This article will review some important things to consider before filing for bankruptcy.
All of Your Debts Must be Declared During Bankruptcy
Bankruptcy is a challenging process, but some people do not reap the true benefits of the process because they are not entirely honest. Unfortunately, many people make the mistake of not declaring all of their debts when filing for bankruptcy. To eliminate debt, it is critical for a person to inform bankruptcy court as well as the involved legal counsel the exact type and amount of debts that are involved.
Bankruptcy is Complicated
Bankruptcy has numerous benefits, but it is a particularly complicated process. Unfortunately, the various nuances involved with the bankruptcy process cause many people to make errors when filing for bankruptcy. One of the most common of these errors is failure to file important documents that are necessary to successfully navigate the bankruptcy process. Another failure is to meet the strict requirements of bankruptcy criteria. In some cases, these errors can lead to delays in your case. In more serious cases, you can end up being unable to successfully complete the bankruptcy process.
Bankruptcy is Permanent
Bankruptcy is a permanent solution. Some people fail to understand this detail or think that bankruptcy “goes away” after several years. While a bankruptcy will eventually leave your credit history, it will forever remain on your record. For example, a person will be required to provide information about the bankruptcy if asked by an employer, which might result in loss of a job that would have otherwise been secured.
Delaying Bankruptcy is Often Not the Best Idea
If there is reason to think that your ability to pay off a debt will increase substantially in the near future, it might be a wise idea to wait to file bankruptcy but this is not always true. Bankruptcy offers the opportunity to eliminate monthly payments on certain debts, which can often make it much easier to afford daily living costs. Filing bankruptcy also results in an automatic stay, which prevents harassing phone calls from creditors as well as wage garnishment.
Speak with an Experienced Bankruptcy Attorney Today
If you are debating filing for bankruptcy, it is important to avoid thinking of the process as routine. While many people file for bankruptcy, it is important to take the process seriously. There are also many long-term effects that come with bankruptcy, which is why it is important to understand these repercussions before entering the bankruptcy process. Fortunately, a seasoned bankruptcy lawyer understands how to best help you navigate this challenging time. Contact attorney Jim A Lyon today to schedule an initial free case evaluation.