Important Considerations When Filing for Bankruptcy

Many people are struggling to pay their bills. Some have even fallen so far behind that they fear they’ll never catch up. They feel as though they’re drowning in a mountain of debt and can’t keep their head above water financially. Fortunately, things don’t have to be this way, though. Solutions do exist, one of which is filing for bankruptcy. Many people have found that this type of insolvency is a welcome source of relief for them, but there are some things that you should know so you can decide whether or not this is the right path for you to take.

Understanding Why You May Want to File Bankruptcy

Certain protections come with filing for bankruptcy. These may bring you welcome relief when you feel as though you’re facing an insurmountable amount of debt. While there are many perks that you may enjoy, some of these include automatic stays (an action prohibiting your creditors from taking certain actions against you) and restructuring or eliminating your debts.

While all of this may sound great, it’s important to realize and understand that filing for bankruptcy doesn’t always go as planned. There are numerous issues that you may encounter. Some of these issues can affect your petition, while others may cause it to be denied altogether. This is the number one reason why you should hire an excellent attorney to help you successfully navigate the process.

Understanding When the Right Time to File Bankruptcy Is

When you’re filing for bankruptcy, you need to remember that timing is crucial. How much income you have at the moment you choose to file affects every aspect of your claim (e.g., how your case is handled, whether you file Chapter 7 or Chapter 13). This is especially true regarding how much money you have at your disposal. You also need to remember that getting a new job or promotion that brings with it a significant pay raise may be great news for you; it will affect your case and not necessarily in a good way.

It’s important to note here that even a temporary spike in your earnings during your bankruptcy case will inadvertently affect the court’s decision regarding whether you can repay your outstanding debts. Although this doesn’t necessarily mean that you’ll need to put your liquidation plans on hold, it does mean that you’ll need to have a good attorney on your side so that you can consult with them before deciding whether to move forward with your plans.

Understanding What is Considered “Questionable Actions” When Filing for Bankruptcy

Another thing that you must take into consideration when filing for bankruptcy is how the court may interpret your actions. You must always be honest and upfront with everything you do. It doesn’t matter how pure your intentions are; you can never exaggerate your financial situation. You also can’t do anything that may cause the court to think that you’re attempting to hide your assets (e.g., transferring assets to another person at any point before or during the liquidation process).

Understanding Why You Need Legal Help When Filing for Bankruptcy

When you liquidate your debt, you’ll have the opportunity to start over with a clean slate. However, it’s important to have an experienced attorney help you sort through the filing process. The lawyers at Weller Legal Group in Tampa, FL, understand what the obstacles you’re faced with when filing for bankruptcy consist of. They also understand how to guide you through all of these obstacles so that you come out the other side feeling less stressed. Our experience is something that you can trust, so contact us today.