Beginner’s Guide to Filing for Bankruptcy

Author: Matthew Boruta | | Categories: Bankruptcy , bankruptcy law , tax garnishment

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Often, filing for bankruptcy is a necessary but unwanted choice that people have to make. There is a lot of stigmas attached to the word bankruptcy, and a decision to file for it is made with a lot of fear. Bankruptcy lawyers specialize in mitigating these fears, and by opting to work with one, you can plan a better future.

If you’re faced with the unfortunate need to file for bankruptcy, the Bankruptcy Law Office of Matthew D Boruta has formulated a Beginner’s Guide to tackling bankruptcy. By following this guide, you will have a better understanding of the process.

Getting Started: Understanding Bankruptcy

Bankruptcy cases can be characterized in multiple ways. One is by the chapter of the US Bankruptcy Code under which the case is filed. Each chapter has different requirements and different goals. Even more fundamentally, it is necessary to determine if the bankruptcy case is a business or non-business case. Just like individuals, businesses can file bankruptcy. The rules are a bit different depending on the type of entity and the chapter under which the chapter is filing.

When it comes to personal bankruptcy, you have two personal bankruptcy options, filing for bankruptcy under Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy: Is often referred to as liquidation bankruptcy, where all your accumulated unsecured debt such as credit card debt and personal loans are discharged. You may have to sell some assets to prove that you fall within a specific income tier, but you are likely to keep the majority of their assets. Filing for Chapter 7 takes about three to four months.

Chapter 13 Bankruptcy: Is often referred to as reorganization bankruptcy and filers will be able to set up a payment plan with their creditors. While no assets are lost in the process, Chapter 13 often takes up to five years to finalize.

Next Steps: Get Professional Help

The good news is that when you work with a bankruptcy lawyer, there is no need to be fearful of the future. Whether you’re filing for personal bankruptcy, because of a wrong financial decision, a business ending, or if you have recently gone through a divorce, it is crucial for you to address the ensuing complex legal process with knowledge of what to expect. Set up a free consultation with a bankruptcy lawyer so that they can review income and expenses. Items needed would be recent pay stubs and a list of creditors.

Keep in mind that there is always light at the end of a tunnel and consultation is the first step in obtaining a fresh financial start.

Advice From The Pros

Professional advice is free, take advantage of this advice and move ahead! Don’t seek assistance from friends and family, as while it may be well-intentioned, some advice could be bad for you and worse for your future financial plan.

At the Bankruptcy Law Office of Matthew D Boruta, I have been offering bankruptcy and consumer rights services to people throughout the state of Indiana from my offices in Fishers and Indianapolis. You don’t have to face bankruptcy alone. Our lawyers are always here to help you, and no question about filing for bankruptcy is too small. If you’re thinking of declaring bankruptcy, visit our website to learn more about how to get it right or contact Bankruptcy Law Office of Matthew D Boruta today.

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