Important Things to Know Before You Decide to File for Bankruptcy

by | Jun 27, 2019 | Lawyers and Law Firms

Bankruptcy is the option that many people choose when they are struggling financially. Many people cannot get out of debt regardless of what they do. If you cannot pay your debts, then it may be best for you to contact one of the bankruptcy law firms in St. Petersburg, FL. However, there are several things you should know before you file for bankruptcy.

Bankruptcy Can Be a Lengthy Process
Bankruptcy law firms in St. Petersburg, FL, will do everything that they can to make sure that the process goes as smoothly as possible. However, this still can be a lengthy process. If you file for Chapter 7 bankruptcy, then it will likely be completed in four to six months. Chapter 13 bankruptcy can be completed in three to five years.

There Are Exempt and Nonexempt Assets
There is a possibility that you may lose some of your assets if you file for bankruptcy. However, it is important to note that there are exempt and nonexempt assets. Clothing, personal items, automobiles, and homes are examples of exempt items. These assets cannot be taken from you.

Nonexempt items include a second car or truck, recreational items, investment accounts, and collectibles. Those items can be seized and sold to take care of a debt.

Bankruptcy Will Be on Your Record
Your bankruptcy will not be kept quiet. You will have to discuss your financial situation with your creditors. This will take place in a public room. The bankruptcy will also be on your credit report, and it can stay there for up to 10 years.

Bankruptcy Forms Are Complicated to Fill Out
There are a lot of forms that you will have to fill out if you want to file for bankruptcy. It can be complicated to fill out these forms on your own. If these forms are not filled out correctly, then it will take you longer to complete the process. That is why it is a good idea to hire an attorney who can assist you with this process.

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