Bankruptcy is often the consequence of reckless financial decisions. Borrowing heavily at high-interest rates to meet business or personal needs is often the prime cause of an individual landing up in a financial mess.
While declaring oneself bankrupt is never an easy decision, it is important to take a timely review to salvage whatever is possible from the situation so that you can put your past behind and move on in life. For those who have a positive outlook, bankruptcy can be seen as leaving behind the grave mistakes of the past and looking towards the future with renewed hope.
There are certain established procedures to declare bankruptcy. The most important fact to know is whether you are eligible to file for bankruptcy and under which specific chapter. If you are completely unaware of bankruptcy laws, it is recommended that you hire a bankruptcy lawyer to guide you on this sensitive matter. An experienced bankruptcy lawyer can charge anywhere between different pricing for helping you file for bankruptcy as per legally established procedures.
If you are aware of the legalities of filing for bankruptcy, then you can hope to save a substantial sum on lawyer fees. You may be able to do it for as low as $ 200. All you need to know is the chapter under which you are eligible to file for bankruptcy. Chapter 7 and Chapter 13 are the most common chapters under which individuals usually file for relief from debts. Each chapter has its own filing requirements which you must comply with exactly as required under the bankruptcy laws.
If a legal counsel is assisting you in the case, he or she will guide you about collecting and filing all the necessary papers and data. Presenting all the papers in the correct form is of utmost importance while filing for bankruptcy. Any deviation from set procedures can result in rejection of your case and you may no longer be able to seek relief from your debts. Also, important is the availability of all the documents that are called for by the court. A single missing or improperly presented document can damage your chances of filing for bankruptcy.
The courts have the complete authority to decide how to divide your assets among your creditors. Each case is treated on its specific merits and on the assets available with the person filing for bankruptcy. In some instances, they are allowed to retain their homes while their other assets are disposed of to compensate the creditors.