Every year, millions of people across the globe are faced with financial problems. For some folks, these issues are so significant that bankruptcy might be the best option. In addition to erasing debts, bankruptcy can help you to clear your mental slate to make it easier to start over. Here are three rules of declaring bankruptcy so you can have a successful experience.
1. Be Honest
Sometimes, people hide liabilities and debts, either because they are embarrassed about the purchase or intend to pay them off on their own. However, you aren't allowed to hide assets or liabilities during a bankruptcy filing, and doing so could make a judge throw your case out or pepper you with fines and penalties.
When you start the process of declaring bankruptcy, be as open and honest as possible. Never skip over important facts and details, and offer your lawyer any documentation you have.
2. Stay In Touch
During bankruptcy proceedings, you will likely have a few sit-down meetings with your bankruptcy attorney. However, between those visits, it is important to ask him or her any questions you may have to avoid issues with your case. Whether you receive a phone call you aren't sure how to answer or you want to know what to do about a letter from a creditor, let your lawyer know. Additionally, always answer calls and texts from your lawyer during proceedings to prevent issues with your case.
3. Be Patient
Declaring bankruptcy isn't an instant fix. While creditors are required to stop trying to collect debts from you, it may take a few days or weeks for them to receive notice that you have declared bankruptcy, so be as patient as possible. If you have questions about the timeline of your case, always refer to your lawyer.
They can reach out to creditors who may not have received the news about your case so they stop contacting you. Remember, bankruptcy can wipe the slate clean, but sometimes it takes a long time to tidy up. Instead of focusing on what the current status of your bankruptcy is, think about how far you have come since you originally filed.
Anytime you are seriously considering bankruptcy, work with a lawyer who has the experience they need to guide you through the process. In addition to helping with paperwork, bankruptcy attorneys can also help you to field calls from collectors and make things right, which can take a tremendous amount of stress off of your plate.
For additional information, reach out to a local bankruptcy lawyer.
Share2 September 2020
If your mountain of debt has grown so tremendous that you can't imagine a way out, then you need to contact a bankruptcy attorney. Even though filing bankruptcy can seem like cheating, it is sometimes the only option when you have consumer or medical debt that is consuming your paycheck and then being left unpaid. An attorney can take a look at your finances and recommend a pathway out of debt utilizing one of the several types of bankruptcy available. Learning more about this process can make it seem more approachable. Dig into the articles on this website to get started with that learning.
