Four Things You Need To Know About Bankruptcy Protection
Few things are more stressful than having to file for bankruptcy. Bankruptcy protection is a long and tedious process that requires the right legal representation. While bankruptcy protection is usually beneficial for the parties filing, it is only beneficial if approached with understanding and diligence. Today, Groce & DeArmon, P.C. will take a look at four things that you need to know about bankruptcy protection before filing.
1. Bankruptcy Protection Can Move Slowly
Like most financial and legal proceedings, the bankruptcy protection process isn’t exactly a speedy one. You need to be prepared for the long run, so you can get the most out of your filing and come out of the process financially stable. A chapter 7 filing, the most common filing for individuals, takes 4-6 months and a chapter 13 filing, the second most common filing, takes several years. For your bankruptcy filing to take full effect, you should understand the time investment required.
2. Thoroughness And Honesty Are Required
It’s hard to be completely transparent with your financial information and disclosures, but when it comes to bankruptcy protection, being thorough and honest is absolutely necessary. Not only will honesty help you financially, it will also help you avoid allegations of bankruptcy fraud. Many cases of fraud aren’t a result of malicious intent, they result from cases where an individual didn’t make the effort to be completely forthright on their paperwork.
3. Bankruptcy Isn’t A Get-Out-Of-Jail-Free Card
While bankruptcy is a long-term solution to your debt that will bring you out on the other side in better shape than before, it is by no means a get-out-of-jail-free card. Your filing will likely affect your credit for years, and you will need to make monthly payments on your bankruptcy for an extended length of time. In some cases, non-essential assets must be liquidated as well.
4. Your Paperwork Filings Will Be Public
It is also important to remember that when you file for bankruptcy, the paperwork from your filings will be made public. For many people, this isn’t a huge deal, as people don’t typically rummage through bankruptcy filing paperwork in their free time. However, it can affect people in the financial industries in regards to future employment. And on top of being available to the public, individuals in bankruptcy court may discover their name published in the local newspaper, online publications, or both.
5. You Will Need A Bankruptcy Attorney
Lastly, it’s crucial that you utilize the services of a bankruptcy attorney during this process. Bankruptcy filings can be very complicated. As we mentioned, mistakes, not malicious intent, are what often lead to allegations of fraud. So choose an experienced attorney to thoroughly represent your interests.
Contact Groce & DeArmon, P.C. For More Tips And Information
If you are looking for bankruptcy protection, get in touch with Groce & DeArmon, P.C. at (417) 862-3706 or contact us online for more information today.