Categorized | Legal

Information About Bankruptcy Law

The legal topic of bankruptcy can make people feel uneasy. It is important for prospective bankruptcy filers to have the facts straight before they move forward with their case. Bankruptcy is when a person requests the assistance of the court to erase consumer debts. Consumers often get behind on their bills due to lack of unemployment, a financial loss or a divorce.

The Law Offices of John N. Kitta can help people who find themselves in a difficult financial situation. People often become confused by what is going on so they hesitate to file the paperwork. A bankruptcy will hurt a person’s financial standing. This is because all of the outstanding debt that is owed will be legally wiped away but the creditors will not charge off the amounts.

This means that a negative item for each creditor including the bankruptcy will be included on the filer’s credit report for a time period of one decade. This can make it hard to get credit lines. It is important for people to speak with a bankruptcy attorney before completing the required bankruptcy documents.

The filing that has to be prepared takes time to complete. A person will need to fill in documents regarding the amount of debt that they are asking to be discharged. People should keep in mind that it is very rare for secured debt such as federal student loans to be discharged through bankruptcy. This is mainly due to the fact that the government backs the loans so they want to guarantee that they will receive all of their money back.

Each creditor’s name must be listed along with the account number, address and amount of debt that is owed. The amounts should be current so it can be beneficial to contact each one directly to receive an updated balance amount.

Once a person has completed this, they can then move on to declare the assets that they have. The government can seize an individual’s personal assets and liquidate them to raise funds to pay off creditors. This is where having legal help from The Law Offices of John N. Kitta can come in handy.

When people have legal help, they can have a bankruptcy filing that is in proper order. All of the paperwork has to satisfy the court’s criteria or else the matter will not be discharged and people will have to pay back the debt that is owed in full.

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