4 Things to Know About Filing for Bankruptcy in Philadelphia

To many, filing for bankruptcy is a last resort. It is hard to admit that you are broke and even more difficult to acknowledge that you cannot meet your obligations. Bankruptcy might be a lengthy and tedious process, but it might be the only way out. A lot of information false information about bankruptcy has forced many to stay away from it. Today we clear the air by sharing four crucial things you need to know about filing for bankruptcy in Philadelphia.

1)    When to File For Bankruptcy

The first sign is a high amount of accumulated debt. Despite having to pay the bare minimum, the interest rate accrued keeps growing, and this does not make it any easier. Missing payments and having the creditors garnish your wages for repayment purposes are reasons enough to file for bankruptcy. Billing your daily expenses on credit cards and maxing them out might force you to file for bankruptcy. There are other individual instances such as accidents, loss of work, divorce, and even the collapse of a business that can be considered valid reasons to file for bankruptcy. However, despite having all the above, the bankruptcy request might be declined. To save you from the headache of determining what will work best for you, consult Philadelphia bankruptcy lawyers and they will help you determine your eligibility.

2)    How to File For Bankruptcy

Learn the bankruptcy clause that will work for you. There is chapter 7 and 13, and they all have different provisions. Once that is determined, you can go ahead and conduct the necessary paperwork needed. Proceed by taking them to court for consideration and pay the required fees. Take credit counseling and mandatory debt management sessions that teach on smart ways to avoid debts and proper spending tactics. Some court sessions might require your presence, and you need to clear your schedule for that. Provide correct information and avoid hiding property as this might force your case to go south quickly.

3)    Benefits

Filing for bankruptcy has its share of benefits that you should enjoy in case you are in a financial rut. You can quickly negotiate terms with your creditors and even protect your assets from being reclaimed to pay your debts. It also helps you adjust your tax obligations, making them more manageable. Bankruptcy also gives you a fresh start since you can settle all your debts by liquidating assets or by making a trade in. It saves you from the emotional turmoil that every debt-stricken individual with no way out goes through. Additionally, it allows you to continue enjoying utilities as they are considered a necessity.

4)    Mistakes to Avoid When Filing For Bankruptcy

Lies are the first thing you need to avoid. Many people hide assets and even fail to reveal all their debt information. The unlisted creditors might collect your assets, and the bankruptcy reprieve you have might not work on them. When you are expecting more debts, do not file for bankruptcy since it will not be covered. In case you fraudulently acquired credit cards and credit from creditors, stay away from this too. These are criminal activities, and you might get yourself in more trouble. Additionally, when your debts are also from student loans and court judgments, bankruptcy is not for you.

Free image from: https://www.pexels.com/photo/u-s-dollar-bills-pin-down-on-the-ground-164474/

© 2019, City Connect News. Copyright Notice & Disclaimer are below.

About Sebastian Müller

Sebastian is a scientist and is fluent in English, German and French and has many interests including science, philosophy, linguistics, history, competitive sports such as rowing, fitness and nutrition. He is a freelance writer also drawing from his experience as an author in peer-reviewed scientific journals. "I love writing and putting my thoughts down on paper. The written word to me is one of the most powerful ways of conveying thoughts and initiating discussions."
Bookmark the permalink.

Comments are closed.