When financial troubles hit hard and you find yourself in over your head with credit card payments and other loans, bankruptcy may be a viable solution to reorganizing your finances. Bankruptcy may seem daunting and you might worry about having to appear in court; however, knowing what to expect can offer you peace of mind during these trying times.
You May Be Able to Avoid Court
Depending on the type of bankruptcy you use, you may not have to appear in court. For example, if you file under a Chapter 7 bankruptcy, your existing assets such as cars and other valuables may be sold to cover your debts. While you may have to attend a creditor’s meeting, this usually takes place outside the court system.
You Can Have an Attorney File for You
If you do not want to attend court in any way, you can obtain the services of a lawyer to have him or her file on your behalf. In most cases, an attorney can file your paperwork electronically and reach out to creditors to plan payments. While you may have to attend a few meetings with a trustee, you might not have to attend court otherwise.
Be as Truthful as Possible
You can avoid court entanglements by being truthful about your assets. For example, if you own more than one vehicle, you may consider transferring ownership of one to a family member to avoid having it seized, this type of action may put you in serious trouble with the judicial system if discovered. Being truthful during the course of your bankruptcy can streamline the process and keep you free of potential trouble.
Avoid Delaying Your Bankruptcy
While deciding to declare bankruptcy can be a life-altering choice, you may want to move forward right away once you decide it is the best choice for your financial situation. Once you begin the process, making second guesses or changing your mind can severely delay the bankruptcy and cause the courts to become involved. You may even be open to greater scrutiny by the courts, as it is their job to prevent fraud.
Work with Your Attorney
Remaining in contact with your attorney can help streamline the bankruptcy process and keep you out of court. Submit a list of your assets and any other information that he or she may request in a timely manner and keep a list of questions that may crop up as you move through each section of the bankruptcy.
Declaring bankruptcy can be a difficult decision, but you do not have to endure it alone. Speak to an attorney, like a bankruptcy lawyer in Las Vegas, NV, today for more information.
Thank you to Ballstaedt Law Firm, for their input into credit and bankruptcy law.