Have Bankruptcy Questions? Ask Us Today!
A survey revealed that each year, more than 1.5 million people file bankruptcy in the United States. Not only this, every year, the numbers are increasing at an exponential rate. The increasing bankruptcy statistics highlight the tough economical conditions that people are facing, throughout the world. Not only small firms; but even large multinational companies face such downfalls, in spite of having professional accountants. When individuals get buried under severe debts and start receiving threats from the creditors; they turn towards the bankruptcy court to help them.
Although, filing bankruptcy gives you enough time and protection to deal with the creditors’ pressure and pay-off your debt; but its procedure is nothing less than a challenge. In order to file a bankruptcy, first, you need to determine which bankruptcy is going to be appropriate in your case. Then you have to make sure that you fulfill that particular chapter’s criteria and finally, when you file it, the actual process of documentation verification, mean tests, etc; begins.
If you want to proceed smoothly through this complex process, then it is extremely important to have ample knowledge about each and every aspect related to bankruptcies. In our previous blogs, we have already discussed individual bankruptcy issues in detail. However, today, we will generally answer some frequently asked questions, about this official state of downfall.
Important Bankruptcy Questions To Ask
1. Which bankruptcy chapter should you file?
Selection of the bankruptcy chapter is a complex decision to make. It depends on various factors – your debt amount; annual income; source of income; assets, etc. A professional bankruptcy attorney can help you choose a chapter carefully.
2. How secured debts and unsecured debts are different?
A lot of people are unable to differentiate between secured and unsecured debts. The claim that is related to the security of a property, as per the court’s verdict is known as a secured debt. In this case, the creditor can make claim on the property.
On the other hand, unsecured debts are not related to any type of property. Thus, even if you file a bankruptcy; the creditor can’t claim your property.
3. Is it possible to change from one chapter to another chapter of bankruptcy?
Usually it is possible to change your chapter of bankruptcy, and move to another one. To do so, all you need is a single line document requesting a transfer. But first, you have to qualify for the other chapter.
4. When can you reapply for credit?
Reapplication for future credits becomes a critical issue after filing a bankruptcy. The decision of granting credit then depends on your creditor. Although there is no law that restricts creditors from making you a grant; but usually creditors themselves, prefer not to do so because of the high risks involved.
5. Do you need an attorney to file a bankruptcy?
Most people prefer to consult a professional attorney, who has proficient insight about bankruptcy forms and can interpret the U.S Bankruptcy Code properly. Some people think that attorneys can only help them fill legal documents. However, being legal advisors and professional negotiators; they can help you with critical issues too, as they know exactly how the court can question you or why it might reject your bankruptcy claim.
Have more bankruptcy questions? Contact Edwin Walker at Walker Law (561) 689-1512