Personal Bankruptcy Planning Is Important, Just Like Anything Else

With so many Americans still looking for jobs, we should expect the number of people filing for bankruptcy to continue to grow in the coming years. The most difficult aspect of filing for bankruptcy is the preparation. Many people file for bankruptcy as a last resort because they are drowning in debt. Often people who wait until the last minute to file for bankruptcy don’t have time to prepare ahead of time. When people are in financial difficulty, it would be much easier if they took the time to talk with a bankruptcy lawyer about their situation. In certain cases, there may be other options available, and bankruptcy may not be necessary at this time. Prior to filing bankruptcy, learning what to do and, most importantly, what not to do is well worth the time spent on a consultation. Before signing up for a payment plan, refinancing your estate, or even worse, borrowing money from friends and family, you can meet with a bankruptcy lawyer to avoid making a costly mistake. recommended

People who do not intend to file bankruptcy are unaware of the landmines they might be walking on, which would explode during the bankruptcy filing. They’re just trying to make ends meet in whatever way they can. A individual must meet certain criteria to file Chapter 7 bankruptcy, according to amendments to the bankruptcy code that took effect in 2005. To pass the means test, an individual filing for bankruptcy must have an income that is less than the state’s median income. Many people in financial distress turn to their pensions and borrow money before declaring bankruptcy, oblivious to the fact that this is considered revenue under the bankruptcy code. Now, the individual who was possibly unemployed at the time has produced a significant amount of income in a short period of time and is no longer eligible to file Chapter 7 bankruptcy. Before committing this blunder, you could have probably avoided it by consulting with a bankruptcy lawyer. There is a workaround, since the debtor’s bankruptcy lawyer will simply ask the debtor to postpone the filing. They’ll have to wait a while for this money to vanish from their radar, before their income is poor enough for them to file for bankruptcy. The problem is that if anyone keeps paying their bills, their creditors will pursue them in court until they can file for personal bankruptcy. If the creditor is successful in bringing the debtor to court, the creditor may obtain a judgement against them and begin garnishing their wages. This also adds another stumbling block for the bankruptcy attorney, which can be overcome once the bankruptcy petition is filed with the court.

In an ideal future, the United States will educate young people about financial planning and how to file for personal bankruptcy and provide them with a basic understanding of the process. This will give young people an appreciation of how the bankruptcy process works in the event that they ever find themselves in financial difficulty. One thing is certain: if the benefits of bankruptcy were taught in school, the credit industry would spend millions on lobbyists to stop it.