Are you overwhelmed by debt and you can’t see any way out other than declaring Chapter 7 bankruptcy? If so, then you’re like hundreds of thousands of other Americans who declare bankruptcy each year to discharge debts they can no longer pay. The first step you should take is to work with an attorney who specializes in handling bankruptcies. An attorney who knows bankruptcy law will be able to give you helpful advice and expert assistance through every phase of the bankruptcy process. Before you pick up the phone to call an attorney, here are some things you should know about Chapter 7 bankruptcy:
There Are Ways To Know If It’s Time To Consider Bankruptcy
If you have a lot of debt but you’re still able to make all of your payments with some money left at the end of the month, it may not be time to think about declaring bankruptcy. There are, however, some other financial problems that are good indicators that a bankruptcy is looming on your horizon, including being called and/or sued by debt collectors, your wages are being garnished by a creditor or creditors, you can’t pay all of your bills and you’re in danger of losing your home.
There Are Steps You Can Take To Prepare For Bankruptcy
Bankruptcies, like most government processes, require a lot of documentation and paperwork. Get yours together before you file, including property titles, deeds of trust, insurance records, vehicle registration paperwork, tax returns, notices of default, promissory notes, pay stubs, bank statements, utility bills, credit card bills and retirement account information. You should also figure out how to cut corners and budget your money because you will have significantly less after declaring bankruptcy and any debt you rack up after declaring Chapter 7 bankruptcy can’t be discharged through another Chapter 7 bankruptcy for eight years. One thing you must not do is try to hide assets from the government or load up your credit cards in anticipation of filing. Both of these activities are illegal.
Bankruptcy Doesn’t Always Wipe The Slate Clean
Before you declare, you should know that not every type of debt is dischargeable under Chapter 7 bankruptcy. Certain taxes, debts owed for alimony or child support, student loans, debts owed for personal injury caused by driving under the influence, debts owed for certain housing fees, debts you forgot to list on your bankruptcy petition and more are not dischargeable. In addition, there are certain times when one of your creditors can successfully petition to have normally-dischargeable debts paid, including credit cards purchases for luxury goods made within a certain number of days before filing for bankruptcy and debt incurred by fraud or false pretenses.
To get the best, most accurate information about, and help with, your Chapter 7 bankruptcy, call the experts at Collins & Arnove at (972) 516-4255. You can also visit www.northtexasbankruptcy.com to find out more about personal bankruptcy.
Collins & Arnove | Chapter 7 Bankruptcy Garland TX | 972-516-4255