Thousands of people and companies declare bankruptcy each and every year, but is it the right choice for you? Without professional bankruptcy advice and learning what it entails, the benefits and disadvantages, it is very difficult to determine if this is the right solution for you moving forward.
Bankruptcy is not something to be ashamed of. After a terrible economic climate and so many people losing their jobs, it’s no surprise that the numbers filing are increasing daily.
Before you start making any final decisions it’s advisable to make yourself a pro and con list. Learn as much as you can about the process, what you can lose and what you can gain and write it all down, putting it into lists. What may be a con to some people may be a blessing to others, it’s down to your own personal reasons how you make your list.
Always seek professional bankruptcy advice from a professional company with extensive experience in the industry. The reason is that this is a long and daunting process that is stuffed with mountains of forms and paperwork that needs to be completed. You can’t afford to miss deadlines or make errors on the paperwork, where a professional company knows what is expected and ensures that all the boxes are ticked when making the submission.
The first step is to complete your petition and statement of affairs forms. When you seek bankruptcy advice, they will be able to advise you on the information you need to bring with you in order to complete these forms. Nothing can go ahead until this is completed. The petition is your account on why you are filing for bankruptcy in the first place, while the statement of affairs is a complete list of your assets and debts, which helps the court determine if you are a candidate for this type of debt solution.
Be aware that this is not a free service and if you’re deep in debt, you need to ensure you have the money available to go ahead, there are court fees which are payable which can amount to around $700. These have to be paid when you submit your forms, so ensure you bear this in mind. This is one of the disadvantages, but you need to determine if the advantages will outweigh this in the long run.
Once you have the fees and you’ve completed the forms, you can get your team to submit your forms. Bear in mind that there are no guarantees that you will be accepted, which is another thing you need to discuss when seeking bankruptcy advice.
You will be advised in due course on whether your petition has been accepted or declined. If you have been accepted, this is when you will be required to hand over your assets, which may include your home or a car that you have paid up in full. This will be used to pay off as many of your secured debts as possible and any balance will be used to pay unsecured debts.
When you seek bankruptcy advice, they should provide you with information on secured and unsecured debts and how they are handled should your application be accepted. An example is that unsecured debts are frozen for around twelve months, after which they are written off. If you are able to pay, you will be given a long period in which to do so, this can be around three years.
It’s advisable to gather as much information as possible before making any final decisions, then weigh up your options before completing the paperwork and submitting your request.