The most common reasons for seriously considering bankruptcy are divorce, separation, medical issues, unemployment, or medical issues within the family.
What Are Some Questions That You Ask Potential Clients About Their Financial Situation To Determine Whether Bankruptcy?
I ask them about their assets, how much is their home worth, the amount of their mortgage balance, what savings they may have, their cars, what equity they have in their vehicles, if they have sold or transferred anything in the last three years, repaid any debt to a family member in the previous year, and if they have any potential personal injury claims that could bring in other funds down the road. I also ask them about their family size and gross income to see if they qualify for Chapter 7.
What Should I Do Before Filing For Bankruptcy?
It would be best if you did not sell anything until you consult your bankruptcy attorney. It would also help if you did not give away anything or any assets before filing. You should not be pay back any family or friends before you file bankruptcy. If any of those are issues for you, you need to consult with your bankruptcy attorney before filing. It is crucial to maintain all your finances and assets’ status quo and consult a bankruptcy attorney before filing. You also should not use your stimulus check to pay down creditors.
How Can Bankruptcy Filing Help With Foreclosure Defense Or Mortgage Modification?
Bankruptcy can help with mortgage modification. Some lenders are much more likely to provide you a mortgage modification because you filed for a bankruptcy. In the past, I’ve seen lenders contact my client and me, indicate that they are aware of the filing, and are ready to help with a mortgage modification. Some lenders will provide a mortgage modification voluntarily without any request. Other lenders will be much more likely to provide mortgage modification with the submission of the Request for Mortgage Modification and the required documents.
Will Filing Bankruptcy Help Me Fight Debt Collectors Off?
Bankruptcy will stop all your debt collections, potential wage garnishments, persistent phone calls, prevent any other lawsuits and bank garnishments. Bankruptcy gives you a discharge from all of your debts, with some exceptions and gives you the fresh start that you need to restart your life.
What Is A Chapter 7 Bankruptcy?
Chapter 7 is for individuals who have financial difficulty paying their debts, for people who want a discharge from their debts. The discharge after bankruptcy wipes out the pre-bankruptcy debts, with some exceptions. Chapter 7 is considered a straight bankruptcy for those with substantial debt and allows them to get a discharge, typically within six months.
For more information on Reasons That People Consider Filing Bankruptcy, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (240) 539-9393 today.
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Former Chapter 7 Trustee