My name is Danielle Diaz. One of the things I've learned in life, both inside and outside the courtroom, is that it is important to not see others as your enemy. Even though you may see the prosecutor as your enemy, he or she is just trying to do a job. It may be possible that you can get a prosecutor or the judge to be sympathetic and get him or her on your side. In order to accomplish this, you need to understand the law. I feel that most individuals do not understand the law, which is why I was motivated to create this blog.
Nowadays, filing for bankruptcy is standard practice. However, few people know what it takes and when it is most appropriate to declare yourself bankrupt. You need to discuss some issues with your bankruptcy lawyer before you make your decision to file.
Have You Exhausted All Other Options?
Bankruptcy is usually a last resort. You need to do all you can to avoid filing for bankruptcy. First, contact your lenders. Your lenders may be willing to offer you a payment plan rather than forgive your entire debt when you file for bankruptcy.
The other considerations you ought to make include determining whether there are assets you can sell to pay off some debts and if you have unnecessary expenses. Lastly, before filing for bankruptcy, sign up for credit counseling. This includes a financial management course that you need to complete within 180 days. Credit counseling may present to you other possibilities to help you avoid bankruptcy.
Will You Pass the Means Test?
It is quite hard for people to use bankruptcy to clear their debts. There are more strict rules on who can or cannot file for bankruptcy. There are also additional fees and filing requirements for those who are eligible.
Before you file, your bankruptcy attorney will require you to fill out paperwork listing your assets and liabilities so they can determine how your income compares to the median income in your state. You are considered to have passed the means test if you have a monthly income below the median income in your state.
If your income exceeds the state's average income, you need to start thinking about whether you've sufficient disposable income to pay your debts. However, if your income is too low to pay your debts, you are eligible for Chapter 7 bankruptcy. If it is too high to pay for unsecured debts, you qualify for Chapter 13 bankruptcy.
Is Your Debt Dischargeable
The main motive for many people when filing bankruptcy is to discharge their debts. When your debt is discharged, you have no legal obligation to pay it, and creditors do not have any claim against you.
Although bankruptcy will wipe out a substantial amount of your debt, it only discharges the unsecured debt. This means only debt that does not have any collateral. These debts include medical bills, unsecured loans, credit cards, and medical bills. Secured debts like automobile loans and mortgages are not dischargeable. Nevertheless, in Chapter 13, your automobile loan may be reduced to a fair market value. To learn more, contact a bankruptcy attorney.