Americans will learn a lot about filing a bankruptcy in the next few years. It’s probable that this happens because of our economy’s continued downward spiral. Most people want to hold on to resist filing for bankruptcy, hoping that this job may be just around the corner or that they still have a little left to cover their bills in their savings. This is the time when financially distressed individuals should plan their future. Civil Litigation lawyer Kingston is an excellent resource for this.The first step is being realistic in planning.
A person who has their credit cards capped out and keeps making the minimum payments should take a serious look at that now and not at what they are hoping to happen in the future. If the debtor is unemployed, they simply can not promise that it’s just around the corner the great paying work is. If the word bankruptcy is in somebody’s mind, they will start saving and budgeting so that they can be ready for bankruptcy to file. Filing bankruptcy is not optional, there are filing fees for a Chapter 7 bankruptcy running about $300 and then there is a credit counseling and financial management course provided by the court that costs around 50 bucks a piece.
It doesn’t involve a bankruptcy solicitor, which can vary significantly depending on the severity of the situation. Trying to do it yourself is not a safe idea as bankruptcy filing has introduced a new challenge with the improvements in code over the last few years. A bankruptcy attorney’s expense can be considered a benefit, depending on the amount of debt issued and considering the amount of property that needs to be protected by exemptions.
Once it comes to bankruptcy proceedings, timing is everything. That is why a person who is experiencing crushing debt should consult as quickly as possible with a bankruptcy lawyer. The bankruptcy attorney may sometimes want to delay the debtor’s filing to get the maximum amount of bankruptcy benefits. Hiring a bankruptcy attorney would allow the debtor to ask questions about which bankruptcy chapter to file, and when to file. Since the bankruptcy code modified in 2005, a means test is introduced that is required to apply to file bankruptcy in Chapter 7.
For example, a debtor ‘s income is geared against one portion of the year; a realtor may get a $50,000 commission in January and make little else for the rest of the year. When they were to file bankruptcy in February, they would have the $50,000 for certification in the six month look back period. They may not be able to file Chapter 7 bankruptcy, depending on the region the debtor lives in. Depending on the facts, a bankruptcy attorney will be able to decide that the bankruptcy proceeding extends beyond the look back and the debtor would now have to file bankruptcy.