Filing
When you know a bit more about the process of filing for bankruptcy, you will allay some of those fears. Start now by reading through this brief overview, highlighting some key points to understand before you embark upon the journey of filing for bankruptcy.
Bankruptcy will put your personal finances on blast
If you are the sort of person who is uncomfortable talking finances with friends, then you should prepare yourself for the personal intrusion that is bankruptcy. You will have to attend several meetings with strangers who will ask you some very personal questions about your debts.
Though the professionals orchestrating the proceedings will be as dignified as possible, it can be a blow to the ego to have your failures on display. Every debt must be sorted to defend against fraudulent charges and other discrepancies. Prepare yourself ahead of time, and walk into the room with your head held high. It is only money after all.
Bankruptcy forms are fairly complicated
Too often, people make the mistake of thinking that bankruptcy is a quick and easy fix to mounting debts, but that is not the case. Bankruptcy can take years to reach a conclusion, depending on the type of bankruptcy you are filing.
Attempting to handle all of the legal proceedings on your own is probably not the best idea, unless you are proficient in law. In other words, it is best to acquire legal representation who will lead you step-by-step through the process of filing bankruptcy.
The coveted “discharge” is a personal result
The ultimate goal of filing bankruptcy is to be free of debt. The “discharge” granted from bankruptcy will bar creditors from calling and harassing you, but it is a personal result. If there is a co-signer, creditors are still free to harass the secondary individual on the original agreement.
If you are a co-signer with a family member, you should let them know what could be ahead. Bankruptcy does not eliminate the debt itself. Honesty is most important when granted a discharge. Even after it is granted, a judge can revoke the ruling if they find out you have lied to or defrauded the court in any way.
Filing bankruptcy is not an inexpensive process
Though you kind of have to be in financial ruin to file bankruptcy, it still is not a cheap process. There are a few ways around having to spend hundreds, but they all involve added professions of financial disparity.
However, the court will waive the fees, if you are broke enough in the eyes of the law. The typical requirement is a yearly income of no more than 150 percent of the national poverty level.