In the current economy, most people find themselves deep in debt and fending off collection calls from lenders. If you find yourself stressed out by building debts and pending loan payments, it may be time to consider filing for bankruptcy. Generally, people deem bankruptcy to be too complex and confusing that they continue to struggle with anxiety and stress that comes along with debt. While some people opt for guidance from an appellate attorney to file for bankruptcy and free themselves from stress-inducing debts. By understanding the following things about bankruptcy, you can start a debt-free life in 2019.
Be Prepared For Public Scrutiny
Bankruptcy opens up your finances to public scrutiny so if you are looking for discretion; bankruptcy is certainly not the way to go. Any appellate lawyer would tell you that if you file for bankruptcy protection, your bank statements, debts, assets, incomes, expenses – all your financial transactions will be submitted and scrutinized. Not just that, you will also be required to meet with creditors and answer their queries publically. While the bankruptcy trustees attempt to keep the bankruptcy proceedings as dignified as they can, but it is a public meeting nevertheless. It can get quite embarrassing and disconcerting for individuals who do not wish to air their financial dirty laundry in public.
Filing for Bankruptcy is Complicated
If you have heard that filing for bankruptcy is complicated, you haven’t heard wrong –it is extremely complicated. Filling out bankruptcy forms can be difficult and require a great deal of attention and expertise which why most people opt for the services of an appellate attorney. These forms include several insightful yet tricky questions regarding your finances. Out of the many forms you would be required to fill, the Schedules A – J and the Statement of Financial Affairs is the toughest to complete. If you have made up your mind to file for bankruptcy, you might be better off with the guidance and services of an experienced bankruptcy or appellate lawyer.
Bankruptcy Requires Complete Honesty & Disclosure
Ensuring utmost honesty and complete disclosure is extremely important while filing for bankruptcy. As an accomplished appellate attorney would tell you, if you are found to be hiding information or being dishonest, you might face an investigation by the FBI for bankruptcy fraud. Therefore, it is imperative that you disclose all your assets, debts, financial transactions to the bankruptcy court.
Filing for Bankruptcy is Expensive
It is important to understand that filing for bankruptcy is by no means a cheap exercise. From hiring an appellate lawyer to the filing fees – filing for bankruptcy involves a significant cost which you should be prepared to bear before making your decision. Although, as your appellate attorney might advise, you get the filing fees waived by petitioning the court which may decide to waive the fees by taking your current income into account.
Your Credit Rating Will Take a Hit
Another important aspect of bankruptcy which you need to take into account is its adverse impact on your credit for years to come. As your appellate lawyer would inform you, it generally takes 24 months for a person to recover from their bankruptcy. During this period, you may find it difficult to acquire loans as many creditors will shut you out, while others may jump at the chance of lending you money at significantly higher premiums. It won’t be the end of the world, but you would be required to work to rebuild and improve your credit score by taking small loads and paying them according to its terms and conditions.
Speak with a appellate lawyer