Avoid Confusion And Learn How To File Bankruptcy
When it involves understanding how to file bankruptcy most people are at first confused mainly on account of ignorance. After all, not too many people know about things such as Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) that came into being in the year 2005. Without knows how to file bankruptcy it would be impossible to understand the essential requirements as well as restrictions related to filing for bankruptcy and this in turn means that without being aware about how to file bankruptcy the whole process can become very daunting.
Ask A Bankruptcy Lawyer
The best person to assist you with learning how to file bankruptcy is a bankruptcy lawyer and though it is not really essential that you hire a lawyer to help you with filing for bankruptcy, having them on your side is certainly a good idea. Unless you are absolutely sure about how to file bankruptcy you will not be able to file for bankruptcy effectively and so you won’t get to reap its advantages.
BAPCPA is complex and it can put you, the debtor, under considerable stress in dealing with filing for bankruptcy. It is therefore a good idea to learn how to file bankruptcy and only after you know the intricacies involved, or hire a lawyer can you then expect to derive any advantage from filing for bankruptcy. You will also need to learn a lot more about how to file bankruptcy than just the restrictions as well as requirements of BAPCPA because there are several different kinds of bankruptcies to consider as well. There are Chapters seven, nine, eleven, twelve, thirteen and fifteen that need to be understood with chapters seven and thirteen suitable only for individuals while those others pertain to partnerships, businesses as well as farmers and even corporations.
Another aspect to understanding how to file bankruptcy is learning about BAPCPA and how it its necessary to undergo a ‘means’ test which is a tool (financial) that helps determine a debtor’s median income. Once this test is applied and the debtor’s median income computed; this income is then compared to the average income in the state in which the debtor lives. After comparison, a figure is arrived at that helps determine the exact amount of debt that the debtor needs to repay.
Also, in case a debtor that has filed for bankruptcy fails to comply with the terms of the bankruptcy the creditor can petition for dismissing the petition which will then rob the debtor of protection from bankruptcy laws and it can then lead to unpleasant consequences including foreclosure.
The last important aspect to learning how to file bankruptcy is understands the process of bankruptcy that includes, among other things, having to file the bankruptcy petition in a court of law.
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