During times of financial difficulty, individuals can turn to the bankruptcy process to help them fix their situation and work toward a more successful financial future. This process can help them take a look at their finances and see where they went wrong and how they can improve their situation. When you are unsure of your financial future, bankruptcy can help improve it. You can plan for a more successful financial future. It can help you improve your current situation to become on that is easier to handle. The automatic stay is a tool involved in the process that can aid people. During the bankruptcy process, the automatic stay goes into effect to help those that are going through the bankruptcy process. Once the paperwork is filed, individuals will have the automatic stay go into effect. This tool bars creditors from contacting you. They are not able to reach you in regards to your finances. Instead of facing this harassment, you can focus on your finances and fix this situation without dealing with people you owe money to.
Who is eligible for the bankruptcy process?
The bankruptcy process can seem scary for some people. However, it is not a sign of defeat for people. Instead, it is a useful tool to rearrange your financial situation. It can help you get back on your feet. Before this process can be used, you must be deemed eligible to go through it. Asa an individual, you can look to file for Chapter 7 or Chapter 13 bankruptcy. Individuals have to go through credit counseling and attend a debtor education course to be considered eligible for bankruptcy. After they complete these requirements, they must pass a means test, which compares their income to the median income in the United States. Their income should be below the median income in order for them to be eligible for bankruptcy. The process of filing for Chapter 13 bankruptcy is similar to Chapter 7 bankruptcy. Before you file, you will need to complete credit counseling 180 days before you file. If you previously filed a petition that was dismissed in the 180 days, you cannot file again. You will need to fill out a petition for bankruptcy. You will then have to list all your assets and debts. Full disclosure of your finances should be done in order to prepare you for a repayment plan and a better financial future.
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 20 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.