If you are having money troubles as either an individual or in a professional capacity; bankruptcy is a word you may have heard thrown around. Bankruptcy is a complex process that allows those in financial trouble to seek help and write off some of the debts they cannot pay. Becoming bankrupt can be difficult but it is also not the end of the line; simply a last resort.
Today we want to discuss some of the important things you should know about bankruptcy and bankruptcy records; and how you can prepare for this possibility in your own life. Here are some of the things you need to know about filing for bankruptcy.
It takes time
Unlike in a small court case where you will be in and out in one day - bankruptcy is a long process and often takes at least a few months to go through to completion. This is because starting from a fresh point in your finances can be complex and when you have multiple lenders that you owe it can be hard to get through the red tape and get everything agreed upon.
Your dirty laundry will be out
Many of us don’t mind talking about our finances with our partner, family, and friends - but some of us prefer to keep things private, if you are one of these people and you don’t like people knowing about your earnings or debts you are sadly in for a nasty surprise. During bankruptcy proceedings, everything will come to light and you will not have anywhere to hide. However, facing the honest truth can be a weight off your chest so use this as an opportunity to learn from past mistakes and make a truly fresh start.
You must be transparent
Following on from the last point, it is crucial during the proceedings that you are completely honest with the court and everyone else. The only way for the bankruptcy to go through is by having all of the correct and up-to-date information so make sure this is done. Make sure to list all of your property, debts, and any credit you have ongoing, all of these things will make a difference to how your case is processed. Honesty is the best policy with these things.
It can be complex
Bankruptcy is a complicated financial process and it is common to be overwhelmed. When you receive the forms to fill in, it is normal to be confused and you can ask for help if you need it. If the forms are a little too complicated for you make sure that you get help from a professional and this will ensure that you don’t get anything wrong and risk jeopardizing your case.
It doesn’t save shared loans or debts
If you have taken out a shared loan or debt with a spouse or business partner these will not be included in your bankruptcy proceedings. It is important to note that only individual debts will be counted so you will need to consider these other items as a separate issue.
We hope these simple pieces of information will help you to get to grips better with bankruptcy.