Filing for bankruptcy can be very intimidating and is not a decision to be made lightly. However, there are times when declaring bankruptcy is the best possible solution to serious financial problems but only if it is done carefully and correctly. Filing for bankruptcy should not be done without the aid of a qualified bankruptcy attorney, and Brent D. George Law in Thousand Oaks is there to help.
There are a number of factors to consider before you make the decision to declare bankruptcy. Here are some of the most important questions to ask yourself.
Are you eligible?
In the United States, there are six different types of bankruptcy. Not everyone is eligible for all types; for example, Chapter 12 bankruptcy is only available to career farmers and fishermen. Eligibility for bankruptcy is determined by an eligibility test. These tests can be issued and interpreted by a bankruptcy attorney.
Where do you owe money?
Filing for bankruptcy can wipe out many of your debts, but not all of them. Mortgage, car, credit card, and other personal loans are all usually cleared when you file for bankruptcy. However, money that you owe because of a government or court order generally is not. Student loans, child support payments, and recent back taxes are not cleared when you file for bankruptcy. Brent D. George Law in Thousand Oaks can answer any questions you may have about specific debts and figure out what filing for bankruptcy will do for you.
What are your possessions worth?
When you file for bankruptcy, you will be expected to pledge a certain amount of money against the debt you owe. While this pledge is often a fraction of the total debt, if you cannot pay it the amount may come out of your property. Your house, car, or other big-ticket items are all fair game during a bankruptcy settlement. If you are concerned about losing some of your possessions, get in touch with a bankruptcy attorney to help you get a fair deal.
Do your loans have cosigners?
Be careful if any of the loans you owe on were cosigned by a family member or loved one, they may be on the hook for your debt. In the event that your cosigner has enough money to make regular payments on the debt in question, you may find that you are not as eligible for bankruptcy as you thought. On the other hand, if the cosigner is unable to pay, they may find themselves pulled into your legal battle, having to declare their finances in bankruptcy court and put up their property in collateral as if they were the one filing.
If you think bankruptcy is a possible solution for you, contact Brent D. George Law. We’re located in the heart of Thousand Oaks and are here to help you with all of your bankruptcy questions.