Many Americans are facing financial ruin in the current scenario. Although overspending and injudicious use of credit cards often does result in financial ruin, there are many other reasons why an individual might face a situation of imminent fiscal hardship. A sudden unexpected job loss, divorce, medical debt and other unfortunate events might leave you staring in the face of such adversity. Unexpected life situations can lead anyone to such a state. To provide some debt relief for individuals and families undergoing these difficulties, the government allows them to file for personal bankruptcy. If you are facing similar situations consult with an experienced bankruptcy lawyer without delay.
Once you retain a bankruptcy lawyer, describe your problems at length and do not conceal anything. In some cases your bankruptcy lawyer would guide you on how to proceed and whether you should file for bankruptcy or not. Bankruptcy is not an option for those cases where the bulk of the debts are non-dischargeable. If you owe child support, back taxes and other non-dischargeable debts, your lawyer would indicate that it is meaningless to file for bankruptcy. An individual with a regular source of income would be advised to file under chapter 13 and those in search of total release from personal liability would seek to file under chapter 7.
A debtor seeking relief under chapter 7 (liquidation) should be very careful when initiating proceedings. You should be honest with your bankruptcy lawyer about every aspect of your finances. If your income is greater than your expenses you should not file a petition under chapter 7. Every monetary transaction would be monitored and paying money to friends and family is absolutely forbidden. Leaving assets unaccounted for and not mentioning financial accounts would cause you to be prosecuted for fraud. The debtor must disclose all assets in bankruptcy schedules irrespective of their perceived value. Omitting any asset is a serious offense and the interim trustee has the power to seize an undeclared asset and liquidate it to pay off creditors.
A chapter 7 petition takes a long time to settle. You can successfully file once every 8 years. Prior to filing you must complete a credit counseling session from an approved agency at your own cost. This should be done 180 days prior to filing the petition. The proof of completing the credit counseling would have to be submitted along with schedules and other documents. You would also have to undergo an additional means test to qualify for chapter 7. If your case is complex and you need quick remedy consult a bankruptcy lawyer. Kansas City residents can find local, qualified legal professionals experienced in handling bankruptcy cases.
