Do you feel like you are struggling financially? You are constantly working, attempting to pick up extra hours, only to pay past due bills. Yet, the bills and invoices continue to pile up, and you feel like you will never fully catch up. This is a financial situation that is all too common for Americans. Fortunately, you do have an option. Filing for bankruptcy might just be that life float that you need to finally get above water financially.
Who is eligible for bankruptcy?
The eligibility requirements for bankruptcy vary from state to state. There are many factors that are considered when approving bankruptcy. A few of these considerations include the amount of debt, current income, current assets, and any previous bankruptcy filings. Most states only allow individuals to file for bankruptcy once in a specified period of time. The individual also has to prove that they have steady income available to make the bankruptcy payments each month. The best way to find out your eligibility for bankruptcy is to work with an experienced mediator.
How much does bankruptcy cost?
Just like any other legal filing, it also costs to file for bankruptcy. Again, there are many factors that decide on this cost. It depends on the state that you are filing, the specific bankruptcy that you are filing for, and how much debt you are currently in. Some debts might not even be approved in the bankruptcy, such as medical bills and student loans. It also matters if you are filing for bankruptcy as an individual or as commercial cases. Generally speaking, approximately 90% of all chapter 11 debtors have less than $10 million in assets or liabilities, less than $10 million in annual revenues, and 50 or fewer employees. This, of course, applies to business bankruptcy cases.
Does the bankruptcy attorney really matter?
You have probably seen numerous bankruptcy ads around your city for an attorney that specializes in bankruptcy cases. Does the specific bankruptcy attorney that you choose really matter? It might. While having an experienced mediator for a classic bankruptcy case might not always be needed, it can be useful. Using an experienced mediator can save you filing fees and can help you navigate the complex legal system. Filing can be expensive, especially if you are already struggling financially. Make sure you file correctly and include the necessary information the first time by using an experienced mediator.
What happens in bankruptcy?
The exact steps of bankruptcy really depend on the type of bankruptcy filed. If you are a commercial business, you could be forced to sell or liquidate your assets to cover your debts. You also might be prohibited from taking on any new vendors for lack of payment. Residential or single bankruptcy filers will usually have all of their debts rolled into a single payment. Your creditors are no longer allowed to call or harass you. You will make that single payment to your debt collector. In some cases, you might be required to have your debt payment automatically withdrawn from your account on your date of payment. However, the specifics of the bankruptcy depend on your mediation services and what was negotiated in the bankruptcy case.
Sometimes the only option to get you out of severe debt is bankruptcy. Many businesses and individuals take advantage of the benefits of bankruptcy. The specifics of your bankruptcy case will depend on your financial situation and the type of mediation that you hire. For this reason, you want to choose legal representation that is experienced with bankruptcy mediation.