Bankruptcy is a court proceeding where a court and a judge examine the liabilities and assets of businesses or other individuals who are unable to pay for their required bills and decide to discharge the debts so that they will not pay them legally.
In this case, the Bankruptcy laws are written, and they offer a chance to the affected people or business to start over.
In other words, bankruptcy can affect your credit, and this may limit you in the future when you are accessing most of the financial-related issues.
However, before you file for bankruptcy, here are the top six things that you should know.
1. What Is Filing For Bankruptcy?
Perhaps you are new in this law industry, and you might not understand most of the terms that are used in this field. One of the best things that you should do is hire Philadelphia bankruptcy lawyers. By consulting them, there will be quite a bit of information that you will get because most of them address most of the concerns relating to bankruptcy.
With their services, you will find all the questions to your answers, and you will walk out feeling more relieved and better than when you walked in.
If you want to learn more concerning bankruptcy, do not hesitate to contact these attorneys because they are there to solve your financial solutions and offer guidance and advice about your legal options.
2. Residency Requirements
When you are to file for bankruptcy in Pennsylvania, one of the things that you need to understand is that you should be a resident for almost ninety-one days while you are preceding your filing date. We have different bankruptcy courts out there where each of them has a jurisdiction that handles cases in a given specific geographical region.
In simpler terms, before you file for bankruptcy, you will be required to offer residency requirements.
3. Why Would You Declare Bankruptcy?
You need to understand that bankruptcy is a long-tormenting situation. Immediately you file one, know that this process will take more than six months to complete.
During this process, it means that all the creditors are prohibited from entering liens against your property or contacting you with an effort to pay on the debt. Wage garnishment, utility disconnection, and eviction are among the top things that bankruptcy stops or prohibits.
4. Credit Counseling Requirements
According to the law, all the debtors should undergo pre-bankruptcy credit counseling for them to file a case in their country or other states.
However, you should make sure that you pay for a given fee for the credit counseling courses. As a debtor, your credit-counseling provider must be successful or approved by the top individuals at the Department of Justice.
5. Waiting Period Requirements
It is essential to understand that there is no waiting period for you to file a bankruptcy. However, you should know that after the filing process, you should wait for successive bankruptcy discharges.
Also, if you had received a bankruptcy discharge, then this means that you should wait for approximately two years before you receive the other second discharge.
6. Bankruptcy Opens Your Finances to Public Scrutiny
If you have been uncomfortable discussing most of your financial business or issues with your family and friends, then you should be prepared to expose your economic life to the public if you file for bankruptcy.
However, you have an opportunity to file for bankruptcy protection that is likely to take too much time.