Five Things You Should Know about Bankruptcy

5 Things to Know about Bankruptcy

Are you considering bankruptcy but you still are not sure it is the right option for you? If you are in the gray area between serious financial issues and actually filing for bankruptcy, you are not alone. It is important you take time to consider all of the consequences of bankruptcy, but it is just as important you not wait too long to file. For many, the benefits are too great to pass up.

What are five of the most important things you should know about bankruptcy before filing?

1. Bankruptcy is Not a Quick Solution

If you are looking for a quick way to fix your financial issues, bankruptcy is not the answer and chances are you will find no quick solution to serious financial hardship. It is important you understand bankruptcy is a process. Chapter 7 bankruptcies typically take several months and Chapter 13 is much longer. Debtors are involved in their repayment plan for years and the fact that you filed for bankruptcy remains on your credit report for even longer. Bankruptcy does provide a fresh start and you will experience improvement in your situation almost immediately. However, everything will not be fixed in a day or two.

2. Bankruptcy is Not Private

If you are concerned about public access to your financial records, bankruptcy might not be the option for you. Bankruptcy requires you to discuss intimate details about your earnings, spending, and other financial issues with strangers. Make sure you understand how much of your private financial information will no longer be private before you file.

3. Failing to Share Information Can Get You into a Lot of Trouble

If you think you can avoid embarrassment by not sharing information, think again. Not disclosing all of your financial information can actually get you into much hotter water than the financial issues you face right now. Withholding information is a federal crime and can result in a bankruptcy discharge, as well as an FBI investigation.

4. You Might Get Frustrated by Bankruptcy Forms

Bankruptcies are filed all the time, so you might think the process is simple. It is only simple if you work with someone experienced with the process. The paperwork for bankruptcy is actually quite complex and has left more than one debtor frustrated and confused. It is also important to remember if you make a mistake on these forms it could result in the discharge of your case.

Filing for Bankruptcy Costs Money

It might seem crazy considering you are struggling financially, but filing for bankruptcy is not free and in some cases, can cost a significant amount of money. Filing fees are substantial and only certain cases will be granted a waiver from the court. Bankruptcy may very well be the best option for you, but you should understand that filing is not free.

Do you have other questions about bankruptcy? Are you wondering if it could solve your financial problems? We can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 for more information.