Being unable to pay your debt can be a difficult place to be. Financial problems may contribute to additional stress in your life, and this could be potentially damaging to your health. It's ideal to get any debts you can't pay discharged, and you can do this by filing for bankruptcy. Knowing specific things about filing for this status can be helpful for any individual.
In order to be eligible for this legal status, you must first prove to the court that you are. This means you will need to fill out the forms with the information listed below:
1. The total for your monthly expenses that may include rent, food and clothing.
2. The amount of debt that you owe to each creditor listed individually.
3. The amount of income you make and proof to verify this, such as a W-2 or old paystub.
The last thing you will want to do is to pay steep fees when filing for bankruptcy. The good news is that the administrative and court fees for this legal process are only $335 effective June 1, 2014.
The Automatic Stay
One of the advantages of filing for Chapter 7 bankruptcy is the automatic stay. This will prevent any creditor from harassing you by phone or letter to receive money that is owed.
The automatic stay will go into effect as soon as your file for your bankruptcy, and this also will prohibit any legal action to be taken against you.
The estimated time for a bankruptcy to be completed from beginning to end is four to six months. However, the exact time will be based on the complexity of the bankruptcy and other factors that include how quickly the court gets to your case.
Listed below are additional common reasons for a bankruptcy taking longer:
1. If one of the businesses you owe money to challenges the bankruptcy.
2. Discharging a student loan is a difficult task and may take a longer amount of time to do.
3. Not taking the required courses that are necessary quickly, such as a personal money management class.
It's ideal to know what to expect when it comes to filing for a Chapter 7 bankruptcy. This can help you avoid any problems while doing so. Be sure to rely on the expertise of your bankruptcy attorney to guide you through this process with ease. Click here to investigate your options for attorneys.