Restrictions of Declaring Bankruptcy
Bankruptcy filing is designed to assist people experiencing financial crises, especially those drowning in debt. This legal process frees them from foreclosure and the harassment of lenders. However, the filing process involves plenty of conditions debtors must meet before they can attain a clean slate. If you’re considering filing for bankruptcy, see to it that you fully understand each restriction first.
Declaring bankruptcy can free you from phone call harassments and lender visits, however, it does not relieve you of your debts. The validity of bankruptcy declaration only lasts for ten years. After that, you are again accountable for the money you borrowed. Moreover, debt relief depends on the type of bankruptcy you apply for.
The law identifies two types of bankruptcy: chapter 7 and chapter 13. The former states you have no assets to pay for your debt, while the latter states you can possibly pay off some debts with your current assets. It is crucial to pick the type that best suits your condition. Applying for the wrong type can potentially put you in a tighter spot.
Additionally, there are some debts that cannot be relieved by declaring bankruptcy. Examples of these are back taxes, student loans and government loans. The reason these are not included is that other citizens would suffer. Schools will not run properly due to lack of funds; the government will be helping less people. To know which debts are relieved through filing, consult a bankruptcy law firm in Johnson City.
It is untrue that filing for bankruptcy is a fast process. However, the filing can be easy with the help of a bankruptcy lawyer in Johnson City. Such legal expert can help you meet the requirements and accurately quantify your debts and assets. A bankruptcy lawyer will also help you better understand credit counseling sessions and settlement meetings you would be required to attend.
You can opt to file for bankruptcy on your own. However, this can make the process harder for you. Filing for bankruptcy requires sufficient legal and financial knowledge, which a lawyer is equipped with. If you decide to enlist the service of bankruptcy lawyer, make sure you turn to a reputable bankruptcy law firm in Johnson City.
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