Bankruptcy can plague you at any moment. When you feel like you cannot get out of debt, or you have more bills a month than you have funds, a bankruptcy application in Burbank could be your only recourse. You may be afraid to take the plunge because of several aspects of your personal life. The majority of people believe that debt is created because they live beyond their means. This is not always the case. Sometimes being laid off or large medical bills can be the major cause of debt by using your credit cards to buy necessary household items or making payments for medical expenses. Prepare for your bankruptcy before you file.
* Account information is vital for filing bankruptcy. It is important to always keep all documentation for at least four years with some up to 10 years. You will need this information even more so once you start the process. The documentation includes:
– Bank statements
– Paystubs or proof of earnings
– Bills, especially the ones that are significant to your case
– Tax returns
– Property deeds, car titles
* Learn the difference between the types of Bankruptcy in Burbank — Chapter 7 and Chapter 13. Basically, Chapter 7 liquidates your assets and forgives most debt, while Chapter 13 consolidates your payments in one lump sum and you make payment arrangements based on your income. Study these two types thoroughly before making your final decision.
* Keep payments up-to-date and current on property or car loans. Basically, this would include any item that you are making payments on that you wish to keep after the bankruptcy. Choose wisely though, if you want to keep everything then this process may not be for you.
* As soon as you decide to proceed with bankruptcy, stop using your credit cards. After you file, if you continue to use the cards or obtain new ones, this will be viewed as trying to get one over on the system. These types of practices will not look good for you in court.
* Even though your credit rating will be affected for approximately 10 years, you may still receive credit card offers. It is unlawful to refuse to hire you because of a bankruptcy.
* Be prepared to pay bankruptcy fees as well as lawyer fees. Typically, the price of a bankruptcy is less than $250 and you can ask the court office for a payment plan. The lawyer’s fees are different for each firm.
* Obtaining counsel is not a necessity. However, there are different laws and information you should be aware of. Not everyone has the time or resources to study every piece of the bankruptcy laws. Acquiring a lawyer could greatly assist you in the end as the firm will fight for you to receive the best settlement possible for your situation.
A bankruptcy does not have to destroy your life. In fact, you can wipe the slate clean and begin again debt free. This process should not be taken lightly; if you need further assistance, contact a lawyer for sound advice.
