The Major Difficulties When Claiming Bankruptcy
The decision to claim bankruptcy should not be rushed into. It might help you solve your financial problems quickly and efficiently, but it certainly places a strain on your future finances. Many people don’t realize that it stays on your credit record for up to seven years and makes simple things, like getting a credit card, difficult. Most average people don’t know how to claim bankruptcy and will utilize the services of a lawyer. However, even with professional help it is still common for problems to occur with the process. The following are the difficulties that many people face when filing for bankruptcy.
Filing for bankruptcy requires that you have lots of supporting documentation. The lawyer will tell you how to go bankrupt and what you need for your application, but you will be responsible for supplying all the required paperwork. You should also make at least 3 copies for the different claims paperwork that you will be required to submit. Don’t be lazy in this area, it is not unheard of for a claim to be denied because of one missing piece of documentation.
Paperwork must be filled out correctly otherwise application is rejected and you are subject to an exclusion period of up to 180 days from filing again. Make sure all your information is correct (double check it) and that you provide the court with all the required information. Withholding any detail is not a good idea because, if found out, your application will be denied.
Creditors can file a petition against the claim and although this isn’t a major cause of rejections you should be aware that it can happen. This is why it is always a good idea to open a dialogue with your creditors and try to negotiate with them. Even if it fails at least you will have a record that you tried to work things out with them.
There are ways to make sure that these problems don’t affect your claim, such as hiring a specialist bankruptcy attorney, but nothing beats spending a little extra time double checking everything. By doing this you will stand a much better chance of having your claim approved.
Once the creditors start hounding you, it becomes a trapped situation with no way out and so you need to hire someone as powerful as a bankruptcy lawyer from San Diego to help you out from debts because California, being the largest state, has an abundance of talent so that they may file petitions and keep the case going for sometime.