The worldwide pandemic has impacted hundreds and thousands of individuals. However, there are a few steps you can take to protect your monetary future. Filing for bankruptcy is the simplest way to erase your bills and protect your retirement account.
Additionally, it can also protect yourself against creditor harassment and get to keep some of your assets. Lastly, a bankruptcy proceeding allows you to have a fresh start by rebuilding your credit and managing your finances properly.
However, dealing with a bankruptcy can be challenging. You will have to learn these steps under the guidance of a competent lawyer. If you are stressed about the provisions of the rules and regulations and want to stimulate your funds, you will have to take early steps.
Only with the help of bankruptcy lawyers can you get relief for your monetary expenses. You will have to consult with them either virtually or in person to file the case and go about the judicial processes. If you are worried about where to go and how to start, you can engage in a free consultation session with the lawyer and understand the scenario.
Analyze the debt
There are a few debts like student loan balance, a child support obligation, and tax debt that are not dischargeable in the Chapter 7 bankruptcy. In these cases, the creditors may seize your property, and you have nothing to do. Hence, analyzing the debt is the first step you will take when filing for a Chapter 7 bankruptcy case.
However, if you’re doing this for the first time, working with a legal professional would make a lot of sense. They’re experienced and skillful in handling these cases, so any assistance from them can help make the filing process less complicated. You can also seek their help in analyzing your debts and determining the need for filing for Chapter 7 bankruptcy.
Hence, if you haven’t found a lawyer yet, you can ask for recommendations from family and friends, or browse the web to get some prospects online. For example, if you’re filing for bankruptcy in San Diego or other places nearby, you can enter ‘Chapter 7 lawyer San Diego’ in the search box to obtain a list of local bankruptcy lawyers in your area.
Determine property exemption
Exemption laws are common in every state. However, the rules and statutes vary from one state to the other. In all these situations, you have to keep an eye on the Chapter 7 bankruptcy case criteria. Most individuals may retain retirement accounts, household furnishing, their vehicle, and equity. Hence, you have to ensure that you protect your assets before filing for a case.
Ensure your eligibility
If you want to become authorized for Chapter 7 bankruptcy, you will have to access your eligibility. You will have to pass the means, or it will be difficult to file for Chapter 7 bankruptcy. For this, you will have to examine the average income in the last six months. If that goes below the criteria, you do not qualify. Try to subtract all the expenses from the payment, which will help you determine your present situation.
Moreover, if you’re ineligible to file for Chapter 7 bankruptcy, you still have other options. For instance, you may file for Chapter 13 bankruptcy, wherein allows you to reorganize your finances under the supervision of the court. But, if you want to pursue a Chapter 7 bankruptcy, then you can wait until your financial circumstances change and make you qualify. This is especially true if you expect your income to decrease in the coming months.
Redeem secured debts
If you have put your property as collateral for the loan, you have no other choice but to pay your creditors. However, when you file for bankruptcy, you will be given a choice to redeem the property or reaffirm the debt. Hence, based on your situation, you will have to understand these options in detail. Only under the guidance and monitoring of an experienced lawyer can you file for bankruptcy and get the benefit.
Remember that taking the credit and filing for the forms is not an easy process. You will have to submit your documents, go for the regular meetings, file motions or objections if required, and wind up secured debts. These are intricate steps that require the handling of professional individuals. If you get hold of a skilled attorney, you can change your situation miraculously.
