Bankruptcy May Be Well Advised If It Is A Last Resort

Written by Adam Peck Category: Nursing Homes January 23rd, 2013 2 min read

A bankruptcy is not an option anyone thinks of lightly. Filing for bankruptcy stays on the credit report for ten years and can close up avenues of credit for some time. But when it is the last resort a person should be well advised to go about it in the right manner or he might end up with more problems. Information on bankruptcy is best handled by a bankruptcy attorney.

Bankruptcy filing allows for the discharge of most,if not all of the following:
Prevents property from being repossessed.
Stops the collection process
Prevents you from having your utilities cut off
Stops/Prevents wage garnishment.

To file for bankruptcy you will need to submit all personal bankruptcy information regarding your finances, recent dealings, secured and unsecured debts, expenses, creditors, assets, and tax returns. . Bankruptcy lawyers advise you to give up using credit cards because creditors can challenge bankruptcy filing thru a lawsuit or any adversary proceedings.

Upon successful filing a provision of stay comes into effect and creditors are not allowed to contact you or lay claim to your property for a month. a short meeting called the 341(a) meeting is generally taken as a go-ahead for the bankruptcy and your debts may be discharged in four to six months time. Now that you know how to file for bankruptcy you may want to know the two most common types of bankruptcy:

Chapter 7 Bankruptcy is when all assets are liquidated to pay off the creditors and the remaining debt is discharged. This is a total resolution of debt as compared to:

Chapter 13 bankruptcy where a debtor agrees to pay the debts over a period of three to five years while getting to keep all assets. An attorney may advise filing chapter 7 bankruptcy if the debtor does not have a steady or any source of income to help pay off the debts over a period of time.

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.