One of the main benefits of a bankruptcy filing is undoubtedly the automatic stay. This powerful legal action serves as a virtual "stop sign" for bill collectors, foreclosures, evictions, and utility shut offs. Once you have filed your bankruptcy petition with the federal court, you are immediately protected from several different types of collection activity, however, the automatic stay doesn't apply to every single debt you owe. To find out what the automatic stay can and cannot do, read on.
Bankruptcy laws have undergone some overhauls in recent years. The changes were made to prevent frequent and ridiculous expulsions of debt but still allow responsible people the ability to address their debts and choose how to deal with them. For those who were filing for bankruptcy just as the laws were being changed, there was probably a lot of concern. If and when you choose to file for bankruptcy and the laws change again, here is what to expect from the bankruptcy courts and your lawyer.
Many business owners, when their businesses start floundering financially, look to bankruptcy attorneys to file for bankruptcy. While this is a perfectly normal and acceptable option, your bankruptcy attorney is still going to ask you what you have done to correct the fiscal problems on your own. If you really have not done much, your lawyer may suggest that you take the following legal actions before pursuing a bankruptcy so that you can keep your business and keep it going.
Filing for bankruptcy can be a difficult experience, especially if you have never experienced it before. There are a few steps in filing for bankruptcy that you should probably know about before you get too deep into the situation. Throughout the course of this brief article, you'll learn a little bit about what you should do before and when you're filing for bankruptcy.
Find An Attorney
It is imperative that the attorney you hire specialize in bankruptcy and have a robust understanding of Chapter 7, Chapter 11, and Chapter 13 bankruptcy filings.
Before you jump head first into filing bankruptcy, you might want to make sure that it is something that you are truly ready for. To help you figure this out, you might want to take a few moments to review the following signs.
You Can't Improve Your Debt-To-Income Ratio
Your debt-to-income ratio is how much debt you have compared to how much income you have. You need to have enough money every month that you can pay for all of your expenses and have a little left over for emergencies.