Filing personal bankruptcy will protect you from creditors that you owe money to. Bankruptcy is a new method to gain protection. It takes away your debts so that you start off on a new note with your finances. If you are planning to file bankruptcy then there are certain things that you should keep in mind.
Firstly, get in touch with a lawyer who specializes in bankruptcy. You would ideally like to work with some one who knows the steps and the process of bankruptcy. When you meet your lawyer for the first time to discuss the process make sure that you carry along all your papers such as bills that you owe, verification of your monthly income and statements from your bank
Then you have to decide with your lawyer exactly how much money you owe. Don't leave out any debt; add all the debts regardless how high the amount comes to. In this process when you start off again, you won't have any forgotten debtsleft behind.
The lawyer will explain to you the difference between secured debt and unsecured debt. Secured debt is debt where your creditor will hold some type of secure interest on what you owe until the entire amount has been paid back. If you don’t pay back the amount owed the creditor can take back what you’ve purchased, such as your car. Unsecured debt is debt that isn’t secured with interest and is not tied to property.
Mind you, not all the debt of yours can be cleared by filing for bankruptcy. Some of them are student’s loan, child support and any unpaid back taxes. These remain outstanding in your bills that you owe. Lawyer needs to be well informed in order to draft a proper application for bankruptcy.
Once you’ve determined all your debt you’ll be filing a bankruptcy petition with the local courts in your area. Your creditors will need to be contacted and notified that you’ve filed for bankruptcy. Once you’ve filed for bankruptcy your creditors will be unable to contact you and won’t be able to collect any of the money that you owe them.
The court will assign a trustee in response to your bankruptcy case. He is liable to contact your creditors and pay their dues. All the proceedings will commence only after all your property, if you own any, is sold off and hence the funds are raised. These funds are spent on repayment of your debts. If the place you live in entitles you to receive a part of the profit made by selling off your property, you would get that. Or you might end up in receiving an allowance for a fixed period of time, in order to restart your life.
Filing for personal bankruptcy is a long and lengthy process that will affect your financial outlook for many years to come. Make sure that you have all the information that you need before you decide to file for bankruptcy.
http://www.alliedarticles.com/Article/Personal-Bankruptcy--Some-Important-Issues-About-Filing/33025
