The bankruptcy process is a financial lifeline that has saved countless Americans from falling into financial ruin. However, it’s important for those who wish to benefit from this process to understand what they’re getting into before they begin.
Here are three warnings that every bankruptcy filer should consider before they begin:
Bankruptcy is not an “open-and-shut” case: The proceedings will take some time to resolve. It’s not a simple legal matter that you’ll complete with a single court hearing. For example, if you file for Chapter 7, you can expect your bankruptcy to last four to six months. Chapter 13 proceedings will last from three to five years. Completing your bankruptcy — no matter which type you choose — will take some time.
Your financial situation will be exposed to the public: As you’ve no doubt seen in many celebrity bankruptcies, when an individual files for bankruptcy protection, the details of their financial situation become public knowledge. Fortunately, most filers are not concerned about others learning the nuances of their debt situations. However, if you’re at all squeamish about others having access to your private financial information, you need to brace yourself for the public exposure to come.
Be honest and upfront about everything: Any kind of misdirection, misrepresentation or deception during your bankruptcy process could result in the failure of the process, and you won’t get to discharge your debt. Make sure that you’re completely honest and upfront about your financial situation or you could get hit with an FBI investigation.
Are you ready to receive the financial benefits of filing for bankruptcy? Review our website for more information.