Bankruptcy Facts - What You Need to Know

When you are planning to file for bankruptcy, you need to know some important things beforehand. This decision is riddled with confusion and anxiety because unless you have access to legal expertise, you cannot possibly know what all bankruptcy entails. The situation is also likely to become very tense for the applicant because you may be constantly threatened by creditor calls during the filing process, and you may be completely unaware of what will happen after the case is finally over.

Here are some important matters that you must understand before you file for bankruptcy:

• To start with, you need a local bankruptcy lawyer in Maryland if you have decided to file for bankruptcy there. This filing is very different from other cases and the court proceedings are different too. Even the most commonly used bankruptcy Chapter 7 typically lasts for 4-6 months. A Chapter 13 case may last up to 5 years; so you should be patient and ready to wait for that long to get your second chance.

• When you file for bankruptcy, it will expose all your funds to public scrutiny. You need to be mentally prepared to disclose your finances, and the mistakes you have made in handling funds and liabilities, etc. to the public. Bankruptcy filing will entail a huge amount of paperwork. You will be expected to disclose your assets, debts, salary, expenses, and even recent monetary transactions.

• You may also be expected to meet your creditors during this process. This means you have to be ready to face interrogations and probing questions in front of the public. This may be quite embarrassing for many people and you should seek a capable local bankruptcy lawyer MD to guide you through the process.

• To file for bankruptcy, you need to be completely honest because only then will the courts agree to discharge of the debts. You have to provide an authentic and complete list of all your debts, properties, and creditors. In case there is any discrepancy or misinformation, you are likely to face stringent action and investigation by higher authorities.

• You should look for an efficient local bankruptcy attorney Maryland because bankruptcy forms are very complicated and need a lot of attention to detail. The forms are likely to contain tricky questions concerning your financial affairs. Only an experienced attorney can help you to understand what kind of information you should provide so that you do not end up losing more than you can afford to.

• Bankruptcy discharge is personal and it is only for your protection. But it cannot get rid of the debt. If you are a co-signer of a document for a home loan, you may be exempted when you file for bankruptcy, but the other person will have to pay up. And to be worthy of discharge, you have to be totally honest about your funds. If the court later realizes that you defrauded your creditors, it is empowered to revoke this discharge.

• As everyone knows, filing is not cheap. Ideally, you must hire a capable attorney for the job. If you file by yourself, you will still have to pay filing fees, which are quite steep.

• Finally, you need to remember that bankruptcy filing may affect your future credit standing. You will be avoided by many creditors and you must work hard to improve your credit score. This is possible by taking lesser amounts of credit and then repaying these according to the set terms.