4 Things You Must Know About Filing Bankruptcy

The majority of people who file bankruptcies are average consumers. However, many average consumers do not know a lot about the bankruptcy process. Here are a few things it is best to know before speaking to a bankruptcy lawyer for help. 

1. It does cost money to file bankruptcy. 

It does come as a surprise to some bankruptcy filers that filing can actually cost some money. You will be facing court costs, bankruptcy filing fees, and of course, attorney fees. Bankruptcy lawyers often charge a flat rate for their services, so it is a good idea to talk to a few before you settle with a particular professional to help you. 

2. You will have to get pretty detailed about your finances and financial status. 

Some people have a hard time with the bankruptcy filing process because they have to be so open about their finances. You will have to disclose information about how much you owe and cannot pay, obviously, but you may also have to provide documentation about financial accounts, owned property, and more. You will also have to answer questions about things like assets and their values, recent sales transactions, and why you cannot pay your bills. Your attorney will be using this information to help prove to the court that you need to file, so don't feel intimidated about disclosing your information. 

3. A creditor's meeting may be part of the bankruptcy process. 

A creditor's meeting or creditor's hearing is often a necessary part of bankruptcy proceedings. This will take place before you actually go to court for bankruptcy, but the hearing or meeting itself will usually take place in some kind of meeting room privately. Your bankruptcy attorney will be present and all creditors that you owe money too will be given the opportunity to be present as well even though they usually do not come unless they have specific concerns.

4. Bankruptcy does not mean the end of your ability to get credit. 

Even though it is a common misconception that bankruptcy equals financial ruin and never being able to obtain credit again, this is actually far from the truth. One of the goals of bankruptcy is to help get you to a place in your financial status where you can start to rebuild your credit. Your bankruptcy attorney can work with you to make sure you pick the right kind of bankruptcy and work with a debt counselor so you have the best chance of rebuilding as you move forward after the bankruptcy is filed. 

Reach out to a bankruptcy lawyer to learn more.