Process Declaring Bankruptcy
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Process Declaring Bankruptcy

On Behalf of | Apr 24, 2017 | Uncategorized |

The Process of Declaring Bankruptcy: How Should I Do It?

Let’s be honest, sometimes bankruptcy is a scary concept. It implies doing something that will decrease some parts of your debt, restructure it other components, and also influence your credit history record for several years. Still, there might be times when it is the wisest choice and the only opportunity to get a fresh start. Therefore, when it is needed to do so, just how do you declare bankruptcy?

Establish Eligibility

Initially, it is necessary to figure out if you are even qualified to file. Put simply, personal bankruptcy is a situation of owing more than you can pay. Hence, not everybody has enough financial obligation, high debt-to-income proportions, or sufficiently delinquent accounts to require a personal bankruptcy.

To find out where you are financially, analyze all your assets. Special attention should be paid to liquid assets (or those that could be quickly liquidated), like stocks, savings accounts, bonds, retirement funds, etc. Then, collect and add up all your expenses and credit statements. If the worth of your assets is less compared to the amount of debt you owe (particularly if your liquid assets are not enough to cover your payments), filing bankruptcy could be a right choice.

How Should You Do It?

There are 2 key ways to file personal bankruptcy as an individual: file for bankruptcy willingly or await creditors to ask the court to declare you bankrupt. Usually, the first is much pleasant, cheaper and faster compared to the second.

There are numerous types of personal bankruptcy, each with its very own advantages and disadvantages, and also each appropriate for a different circumstance. To find more about types of bankruptcy click here. It would certainly be important to consult with our lawyer to find out which type of bankruptcy is best for your situation.

Do not hesitate and contact “Jack Setters” Law Firm to find a local attorney with office in Dalton and Ringgold, who is focused on bankruptcy legislation.  Bankruptcy can change your financial life for the better once and for all!