When a person has found that they are facing seemingly insurmountable debts, bankruptcy can be necessary for giving them a chance to escape from these financial burdens so that they can start to rebuild their financial lives. As you are reviewing whether filing for bankruptcy is a good option for your situation, there are three important pieces of information that you will need to keep in mind. Otherwise, you could have a poor understanding as to the type of results that bankruptcy protection will be able to offer you.
Bankruptcy Can Be A Lengthy Process
Filing for bankruptcy protection is not a particularly quick process. As with most other legal matters, it will take some time for this matter to work its way through the court system. However, you will not have to wait for the bankruptcy process to be finished in order for you to receive the protections of bankruptcy. For example, any collections, evictions, foreclosures or other actions by creditors will be placed on hold so that the bankruptcy process can run its course. If the creditors do need to contact you during these proceedings, they will need to contact your attorney.
There Are Some Debts That May Be Exempt From Bankruptcy
While bankruptcy can be essential for allowing those with crushing debts a chance at finding relief, there are some debts that will be exempted from these proceedings. A common example of this can be the debts from student loans or backed taxes. When you are considering whether bankruptcy will be beneficial to your situation, it is important to effectively determine the amount of your debt that will not be included in the bankruptcy order. Due to the complexity of the rules surrounding this, it can be best to work with a professional that has experience with bankruptcy proceedings to ensure that you are accurate when determining the debts that will have to be excluded.
The Bankruptcy Negotiations Do Not Have To Be Stressful
A core part of the bankruptcy process will be negotiating with the creditors. This can be an intimating part of the process for a bankruptcy petitioner. However, it is not necessary for you to handle this part of the bankruptcy alone. A bankruptcy attorney will be able to represent you throughout these negotiations so that you will avoid the need to personally handle these discussions without professional guidance and assistance; Individuals with especially complicated finances will really benefit from this representation during the negotiations as their debts may be both extremely large and very complicated.
If you're considering bankruptcy, speak with a lawyer.