If you are running into debts and want relief from your creditor’s frequent threats, you might be thinking of filing for bankruptcy. The process of filing for bankruptcy may be tedious and confusing, and that is why you need the help of a bankruptcy law firm Las Vegas to make it swift.
Yes, it is difficult to understand how bankruptcy works, especially if you are not a lawyer. It may not be easy finding someone to help you through the process and give you a picture of how your finances will look after the declaration of bankruptcy. You should understand the following five aspects of filing bankruptcy to stay on the right track.
- It takes time
Filing bankruptcy is not an in-and-out process; it takes time to file. You may think that bankruptcy operates just like small claims, which only take a day. Chapter 7 will usually take between four and six months to file the most popular type of bankruptcy.
The other types of bankruptcy, Chapter 11 and Chapter 13, may take up to five years. Chapter 11 bankruptcy may go for up to two years. Therefore, before you opt to file bankruptcy, you should be ready to stick with the documentation and laws.
- It exposes your finances to public
The only reason most people may shy away from filing bankruptcy is because it opens doors for public scrutiny. If you don’t want your friends, relatives, and family to learn about your finances, you should not file for bankruptcy.
The court orders you to file an extensive package and necessary paperwork when you file for bankruptcy protection. In this paperwork, you are supposed to disclose all your recent financial transactions, a list of all your debts, assets, expenses, and personal income.
The court also instructs you to attend the necessary meetings with your creditors. The bankruptcy trustee will ask you all the necessary questions in public, and any creditor has the right to question you during this meeting.
- It requires complete disclosure and honesty
When you file for bankruptcy, you are required to exercise honesty and complete disclosure. In most cases, the court will assume that only honest debtors are entitled to a discharge of debts. In so doing, the court will ask you to list all your creditors, debts, and assets.
The court may discharge the case if any case of dishonesty is discovered. The court may also call for an investigation by the FBI for fraud.
- Filling the bankruptcy forms is complicated
Bankruptcy forms are just as complicated as tax returns forms, making them a bit hectic to file. In most cases, the forms will require full disclosure of your financial affairs.
Therefore, before you call for bankruptcy, you should give yourself some time to understand all the forms like the Statement of Financial Affairs and Schedules A through J.
- It is expensive
Filing for bankruptcy is expensive in terms of time and money spent. How much you spend when filing for bankruptcy depends on whether you hire an attorney to take you through the process or not. You are likely to part with hundred or thousand dollars when you file for bankruptcy. The filing fees are also substantial when you decide to file alone.
If you are a destitute debtor, you can file a petition requesting the court for a fee waiver. The decision to grant you a waiver will depend on your income level.
When you look forward to filing for bankruptcy, you should hire an attorney to help you go through the tedious process and improve your chances of success.
