3 Important Facts That Everyone Should Know About Personal Bankruptcy

Most people know less about personal bankruptcy laws than they think. In fact, there may be details about the process that they never hear about until the need for bankruptcy protection is apparent. When you choose to seek help from a bankruptcy lawyer in Valdosta, here are some examples of what you will learn.

There’s More Than One Kind of Personal Bankruptcy

Personal bankruptcy is available in two different forms. With a Chapter 7 action, all non-exempt assets are liquidated and the court uses the funds to settle as much of your debt as possible. Any remaining debt is discharged.

With a Chapter 13 action, you are placed under the court’s protection while you repay your debts according to a court-approved plan. All payments are remitted to the court, then disbursed to your creditors. This action may last between three and five years. Any non-priority debts that remain after that time are discharged.

Not All Debts Can Be Discharged

As your bankruptcy lawyer in Valdosta will explain, some debts cannot be discharged or can only be discharged under a narrow range of qualifications. These include back taxes, child support, and student loans. If a significant amount of your debt includes these types of obligations, your lawyer will likely recommend filing a Chapter 13 petition and paying off those debts under this type of plan.

Creditors Can Challenge the Bankruptcy Petition

Your creditors do have the opportunity to attend a hearing and challenge the bankruptcy petition. You are generally required to attend that hearing. Both the trustee and the creditors are allowed to ask questions. Your bankruptcy lawyer in Valdosta will also be present to ensure that all questions are in compliance with current laws.

The reality is that while creditors are free to attend the hearing, few if any will actually show up. Most will be there to observe and waive the opportunity to ask questions. In many instances, the hearing serves the purpose of ensuring the court that you have provided full disclosure and that there is no information that is being withheld.

Do you believe that filing for some form of personal bankruptcy would be the best move for you? Contact Charles Farrell Jr LLC today  , and let’s take a look at your situation. We have the experience to evaluate your financial condition in light of current bankruptcy laws and advise you of the best approach to take. Once you make your decision, we will file the petition with the court and ensure your rights are protected.

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