Filing for bankruptcy: how does it work?

Filing for bankruptcy: how does it work?

Filing for bankruptcy is a very big step. You should know all that you can about this. Once you have made your mind that you want to file for bankruptcy the next step that comes is if you qualify for bankruptcy or not. If you have no options other than filing for bankruptcy then the first intelligent thing to do is to hire a bankruptcy attorney. Now many law firms provide you with a bankruptcy attorney but you have to go for the best, someone who specially works with bankruptcy cases. One of the best bankruptcy attorneys can be found on https://www.tulsabankruptcyattorney.pro.

Filing For Bankruptcy
Filing For Bankruptcy

There are a few basic things that you should understand before filing for bankruptcy. We’ll be discussing those here.

What is bankruptcy?

It is a legal process that allows the people or other entities that cannot pay debts to the creditors to seek relief from their debts. First, the debtor files a petition and then all the assets of the debtor are evaluated which may be used as a means to pay the outstanding debt. Bankruptcy allows the debtor to make a fresh start.

Do you qualify for bankruptcy?

There are many myths involving bankruptcy. It is not as hard as most people think to qualify for a fresh start. Bankruptcy does not only allow a fresh start but also is a way to keep you from losing everything. If a person has maxed out the credit cards, has lost the job and there is no way to pay the debts then bankruptcy is the best option in this situation. There are many reasons for someone to go bankrupt.

  1. Medical expenses: Medical expenses can be a lot to take. According to a report published in 2019, almost 66% of bankruptcies in the U.S. were due to medical issues.
  2. Job loss: Loss of income can be devastating and it puts pressure due to the bills which need to be paid at regular intervals. A steady income is a must for a living.
  3. Excess use of credit: Excess use of credit can lead to massive debts. People who do not spend credits wisely might be at the risk of bankruptcy.

These are some of the reasons why someone goes bankrupt. But there is no need to worry; filing for bankruptcy will allow you to make a new start. While it remains on your credit report and might make it hard to get credits in the future, if you have evaluated your financial situation accurately and consulted a good bankruptcy attorney then there is no better option than filing for bankruptcy.

Why should you file for bankruptcy?

If you are under a lot of debt then it makes sense to file for chapter 7 or chapter 13 bankruptcy. But there are other options like negotiation with the creditors which if you have already tried then there is no other way than to file for bankruptcy.

Conclusion:

Many law firms are there that can help you in proceeding with bankruptcy. Hire the best bankruptcy attorney who can help you in finding a way out of financial distress. It may be a little hard to get on track after bankruptcy but if there is no other way then the afterlife may be better and stress-free. It is your right to start over in life; you can leave all that is stressing you behind.