If you’ve gone as far as to decide to file for bankruptcy, you know that it was difficult to come to that decision. For many people bankruptcy means broke, and no one wants to claim that. Educating yourself on the basics of bankruptcy in your jurisdiction is one way in which you can prevent the stressful process altogether. When you begin interviewing for bankruptcy lawyers Marietta area you want to consider answering the following questions:
Which Debts Will Be Cleared?
Despite what you may have been told, not all of your debts will be discharged during the bankruptcy process. There are a lot of unsecured debts like credit cards and medical bills that can apply, however, there are still some that do not. Things such as tax debts, personal loans, and court ordered payments, and more can be exempt from the filing. If you are suffering from student loans or back child support, chances are your debts will be denied as they don’t count as being exempt. If you have debts such as mortgage or car payments they may be discharged, however you may only qualify for chapter 13 instead of 7. Being aware of the type of debt that you have as well as the eligibility for discharge is a great advantage which your bankruptcy lawyers Marietta area will appreciate.
Which Assets Are At Risk?
Myths and hearsay have many feeling that if they file, they will lose all or most of their assets. Contrary to popular belief losing your assets is something that rarely happens. There are instances in which the judge will decide that you are financially stable enough to liquidate some of your assets to repay the debts to your creditors. Having bankruptcy lawyers Marietta area can help put your mind at ease, as most often no assets will be taken from you. Bankruptcy exemption laws are set in place to protect people from such acts. Typically when filing a chapter 13, your assets are 100% safe from being liquidated. You are put on a payment arrangement and as long as you stick to the plan you are free to keep what’s yours.
What is it that I Need to Do?
Typically by the time you get to the point that bankruptcy is your only option you’re in a frantic state of mind. There is a lot that is reviewed during a bankruptcy case, and therefore you need the help of bankruptcy lawyers Marietta area to walk you through step by step. Sometimes people will begin selling assets as a means to keep them from being taken or liquidated. However giving away your assets prior to your filing can really cause a problem and could ultimately affect the case. Other instances that will seriously impact your case in a negative way is getting more income as well as paying down your debts. Your lawyer will explain that ultimately you should stop all unnecessary spending, stop paying excess debts, as well as don’t sale or give away anything within the 6 months leading up to your filing.
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