The thought of bankruptcy itself is so intimidating. Filing for bankruptcy is going to be the worst of your financial deals. However, when situation leaves you with no other choices, then you have to file for bankruptcy. There are many things that you need to do in order to declare a state of insolvency. If you do not feel confident about doing it all by yourself, then you can consider hiring bankruptcy lawyer San Diego.
There are many things that you need to know before you declare indebtedness. Few of the most important ones are below:
Decision About Filing for Bankruptcy
The entire process is going to be very hectic and painful for you. Therefore, before you make the decision to announce insolvency, you should evaluate if it is going to evaluate you. You should also check if there are any other alternatives available. Maybe speaking to your debtors will help. Therefore, talk to your debtors and try to negotiate with them for a settlement of lower monthly payments.
You also need to evaluate if you are eligible to file for bankruptcy, as the process requires many criteria to be filed. Check if you are able to fulfill all the criteria to file for insolvency, then you should also sit and analyze your debts. A lawyer can help you to do that. There are different kinds of debts that can’t be erased even if after you declare liquidation. Prepare yourself well before getting your hands dirty.
Decide if you are filing for Chapter 7
This requires your income to be below certain level. Before you decide to file for bankruptcy, decide if you want to go for Chapter 7 or Chapter 13 declaration. Once you decide, check whether you qualify all the criteria of Chapter 7. You need to fill a series of forms. Therefore, prepare yourself well in advance.
Decide if you are eligible for Chapter 13
If you fail to meet the criteria of Chapter 7, then you may be eligible to file for Chapter 13 bankruptcy. If you have income left after paying your basic expenses, then you are eligible for Chapter 13. Remember that you can’t file for Chapter 13 bankruptcy when filing for an organization, even if you are the sole owner of that organization. Check all the eligibility criteria before you go for it.
Know how to get the discharge
Once you are able to get the discharge, law forgives you from paying certain debts. Therefore, before you file for bankruptcy, know how to get the discharge. Your creditors won’t be able to ask directly you to pay off debts. They won’t be able to take charge against you. Knowing all these in advance is going to be very helpful.
Know how to recover from bankruptcy
This is most important among all. You need to plan your expenses beforehand and also plan out your budget. Always try to pay your bills on time and have some savings for emergency expenses. Once you declare bankruptcy, you can’t afford to do the same mistake again. Plan the second life you get. Act wisely!