The Ins And Outs Of Filing For Bankruptcy: What You Need To Know

Filing for bankruptcy is a fantastic option for eliminating debt and starting over financially. Many people who are contemplating bankruptcy, however, lack a thorough understanding of how it operates. The process of having your debts forgiven by the court does not involve filling out some paperwork and waiting for a ruling. The following are five things to consider before filing for Bankruptcy in Orlando.

  • This Will Not Happen Overnight

Some civil courts, like those dealing with small claims, can wrap up a matter in as little as a single day. Yet, the bankruptcy courts do not function in the same way. Consumers typically seek debt relief through Chapter 7 bankruptcy since it is a very quick and easy process. Even yet, four to six months is a realistic timeframe for the typical Chapter 7 bankruptcy case.

It will take a great deal more time to file for bankruptcy under Chapter 13, which is the second most prevalent form after Chapter 7. During the Chapter 13 bankruptcy process, a borrower’s debt is reorganised into a repayment plan; however, some of the borrower’s debt may also be completely discharged. It may take some time for a case to be completely completed, as these payback programmes may last for three to five years.

Cases Of Bankruptcy Are Made Public And Can Be Accessed By Anybody

Your bankruptcy case details will be available to the public once they become part of the court’s public record. Most people don’t worry about this because they don’t bother to look into their friends’ and family’s bank accounts. This is something to bear in mind if there are financial details you’d rather remain private.

Just Your Debts Will Be Waived

Petitions for bankruptcy can be submitted either solo or jointly between spouses in situations where the couple is married. In bankruptcy, the only debts that are discharged are those of the people whose names are listed on the petition. This is true regardless of which option you choose. Therefore, in the event that you have guaranteed the obligation of another individual, whether through cosigning or any other means, you will not be absolved of duty for paying off that debt. In the event that they do not, you will still be responsible for paying the amount.

Immediately Following A Bankruptcy, Collection Attempts Cease

It is well knowledge that if a person files for bankruptcy and is successful in having their case, they will be discharged from all of their existing financial obligations. However, many individuals are under the impression that filing for bankruptcy immediately puts an end to all operations related to debt collection. After submitting your petition to the courts, you should anticipate receiving a stay from them. Even though this will not result in the elimination of your debt, your creditors, including debt collectors, will not be able to attempt to collect on it until your case has been concluded. This includes the ability to sue you for the debt.

Closing Musings

You do not need to have the assistance of an attorney in order to file for bankruptcy; nonetheless, doing so is strongly recommended. Skilled attorneys at a Law Firm will evaluate your one-of-a-kind circumstance, review your legal rights and options with you, and aid you in filing for the appropriate chapter of bankruptcy after doing this analysis. You can have a complimentary consultation by phoning them at this very moment or contacting them through their website.