The Top Five FAQ About How Bankruptcy Works

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iling bankruptcy is financially beneficial, but can also be confusing. The intricacies of the Bankruptcy Code are best left to a professional to interpret, and doing so will result in the best possible outcome for your case. The goal of every case is to obtain a discharge of the debts that are weighing you down, so you can start over with your finances. The right bankruptcy attorney will know how to help you reach this goal, and can also give you advice on how to stay on track with your money so you do not need to file again down the road.

But even if you have decided to file bankruptcy, you may still want to know a little bit about it before it actually happens. Five of the top bankruptcy FAQ’s, and some general information about those questions include:

•         Do I have to give back all of my stuff? The answer depends on what you can reasonably afford to keep, and your family’s needs. If you decide to reaffirm a debt, you are allowed to keep the property associated with that debt, but you do have to keep making payments. On the flip side, if you are agreeable to surrendering certain things back to the lender, you can do so and eliminate the debt for the surrendered item.

•         Will I still have to pay for my house and/or car? Again, the answer depends on your intentions and your needs. If you intend to remain in your home and/or keep driving your car, you do have to maintain payments. The amount and manner of payment depends on the type of case you file, and in some instances you will be permitted to pay a lower amount than the balance that is owed. This is decided on a case by case basis, and for a thorough analysis of your situation, a complete review by a knowledgeable bankruptcy attorney is required.

•         Will my wages still be garnished? No! When you file bankruptcy, collection activity of any type must stop at once.

•         How long will my case take? It depends on what type of case you file, and how full of a docket the Court has when your case comes up for review.

•         Will I have to go to Court? Most debtors are only required to appear once, at the beginning of their case, for the 341 hearing. After that, most court appearances can be handled by your attorney without your presence being required.

If bankruptcy is the answer for you, call us to find out more. We have helped others get their finances back on track and can help you too!

 

For help with managing overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.