If you are burdened with debts and you have no way to pay off the debts, declaring bankruptcy can be the last thing you can do to get rid of the overwhelming situation. But this solution is not for everyone. While bankruptcy can provide great relief by allowing you to start fresh, some other debt solutions may be better for you. Moreover, you may not qualify for bankruptcy. In this post, we are going to focus on the criteria that you have to meet to qualify for bankruptcy.
Anyone can apply for bankruptcy, but whether you qualify for bankruptcy is determined by the court and an attorney. There are some limitations and they are determined by the amount of your personal income. You may not be eligible for all types of bankruptcy if your home state’s median income level is below your income. In that case, you will have to make a payment plan. The amount of debt you can claim will be determined by your particular bankruptcy chapter.
If you have previous bankruptcy cases, they will impact your eligibility. Because of your previous bankruptcy, you may have to wait for some period. In that case, for a few years, you will not be able to receive an additional bankruptcy ruling.
You will have to obtain credit counselling to qualify for bankruptcy. You must do that 6 months before submitting your petition. A credit counsellor will help you determine whether you are eligible for bankruptcy and whether there is a better option than bankruptcy. You may not qualify for bankruptcy without the help of a credit counsellor.
In most cases, bankruptcy can greatly help you handle outstanding debts. There is a myth that if you declare bankruptcy, you lose everything you have. But the reality is, such a thing rarely happens. What happens is that the public has access to the information that used to be your personal information.
There is another misconception that you can completely get out of debt by declaring bankruptcy. But the fact is, you should never choose such a serious legal matter as bankruptcy if it is not necessary. Before applying for bankruptcy, talking to a financial counsellor is of utmost importance.
People who are eligible for filing bankruptcy should seek help from an attorney or other businesses such as Safe Haven Services who specialise in bankruptcy claims and will give you advice and assistance about how approach going bankrupt. Before filing for bankruptcy, you often have to seek credit counselling. To start the process of filing bankruptcy, you need to fill out an application for. In that application form, you will need to provide information about your personal property, debts, financial situation and other things.
You will have to submit these documents to your regional court. After you have paid filing fees, a trustee will review those documents. The procedure of handling your debts will be determined by those documents.
Keep in mind that all bankruptcy cases are not the same. Your case is different and it is likely to be handled in a different way. That is why you should learn as much as possible about your financial rights, bankruptcy requirements, and potential outcomes of declaring bankruptcy.
Many people and businesses use bankruptcy when they can not repay their overwhelming debts. Everyone’s case is different, so it is not wise to think that bankruptcy only means endless calls from creditors. While some people may find it difficult to make both ends meet when they are bankrupt, for most people bankruptcy is associated with relief from stress and anxiety.
That said, you should seek help from an attorney to know if you have any alternative. Bankruptcy has serious financial consequences, so you should consider all other options before applying for bankruptcy. You should choose this serious legal procedure only when it is necessary.