If you have considered filing for bankruptcy, you may be wondering about what to expect during the process. The nature of filing for bankruptcy can be tedious and, most likely, you are already under enough stress worrying about your debts.
Before you proceed with any debt relief options, you should contact a qualified bankruptcy attorney and schedule a consultation. They can review your financial situation and help you determine if bankruptcy is right for you.
Reviewing Your Situation
Your bankruptcy attorney will need information about your finances such as your income, list of assets, list of debts. It is also important to let your attorney know about any liens or orders issued against you, such as a foreclosure notice or wage garnishment order. All of this information is important in helping to determine if your financial situation is best resolved through bankruptcy, or if other debt relief options would better suit your needs.
In general, your bankruptcy attorney may ask questions to rule out any chance your case would be unsuccessful. In some cases, your attorney may advise you not to seek bankruptcy at the present time if you meet any of the following conditions:
Previously filed bankruptcy
Bankruptcy laws set limits on how often a person can file for bankruptcy and the amount of time that is required between filings. In general, if you file for Chapter 7 you must wait 8 years from a previous Chapter 7 discharge or 4 years from a previous Chapter 13 discharge. If you file for Chapter 13, you must wait 6 years from a previous Chapter 7 discharge or 2 years from a previous Chapter 13 discharge.
Recently acquired new debts
Taking on more debt right before filing your case could result in the court viewing your actions as fraudulent. You may not purchase more than $550 on a credit card within 90 days of filing for bankruptcy or take a cash advance of $825 or more within 70 days of filing.
The bankruptcy court may also view transferring assets just prior to filing bankruptcy a fraudulent action. In many cases, bankruptcy can protect your assets from being liquidated by creditors, and intentionally withholding or removing assets prior to filing is not acceptable.