Factors That Impact Your Bankruptcy Case

Understanding Why You May Wish to File BankruptcyAre you struggling to pay your bills? Do you find that you have fallen so far behind that you think you’ll never catch up? Maybe you’re drowning in a mountain of debt.

While you may be struggling to keep your head above water financially, it doesn’t have to be this way. There are solutions available for you.

One of the solutions you may wish to consider is bankruptcy. This type of insolvency is a welcome source of relief for many people today. There are a few things you should know to determine if this is the right path for you.

Understanding Why You May Wish to File

Bankruptcy offers certain protections you may welcome as they bring relief when you’re faced with insurmountable debt. Some of the many perks you may enjoy include having debts eliminated or restructured and automatic stays that prohibit your creditors from taking specific actions against you. However, this process may not go as planned. You may encounter numerous issues that either affect your petition or cause it to be denied altogether. Herein lies the reason you’ll need an excellent attorney to help ensure your success.

Understanding the Right Time to File

Timing is crucial when you’re filing for bankruptcy. The income you have at the moment you file will affect all aspects of your claim. In specific, how much money you have at your disposal will affect everything. Not only will it affect how your case is handled, but it’ll also affect whether you can file a Chapter 7 or a Chapter 13. For instance, getting a significant pay raise because you’ve either got a new job or a promotion may be great news, but it won’t necessarily be good for your case.

Even if you only receive a temporary spike in your earnings during your bankruptcy case, it’ll inadvertently affect the court’s decision regarding your ability to repay your outstanding debts. This change to your financial situation doesn’t necessarily mean that you’ll need to put your liquidation plans on hold altogether. However, you should consult with your attorney before moving forward with any such plans.

Understanding Questionable Actions When Filing

When you’re in the process of filing for bankruptcy, you need to pay attention to how the court may interpret your actions. You must be upfront with them. Regardless of how pure your intentions are, you mustn’t exaggerate your financial situation. It’s also essential for you to avoid doing anything that the court may see as an attempt to hide your assets (e.g., transferring assets to someone else before or during the liquidation process).

Understanding Your Need for Legal Help When Filing

Although liquidating your debt offers you the opportunity to start over with a clean slate, you’ll need an experienced attorney to help you sort through it. The lawyers at Weller Legal Group of Tampa in Tampa Bay, FL, understand the obstacles you may encounter along your way here. We also understand how to guide you through such obstacles. Trust in our experience, and contact us today.

Picture Credit: Crello