Bankruptcy Laws

Filing Bankruptcy

When all else fail, filing bankruptcy may be your only option. Is filing bankruptcy so bad? Surprisingly, no. If filing bankruptcy is your only option after you have exhausted all others, then it may be your best choice that will give you a fresh start in life. Sometimes, filing bankruptcy is a good thing. Some people are even filing bankruptcy online. But, you should do it with extreme caution. Filing for bankruptcy is not to be taken lightly. The consequences of filing bankruptcy stay on your record and your credit report for a very long time.

Filing for bankruptcy - what happens now


Filing bankruptcy

The day you file for bankruptcy is a very important day. You would have undoubtedly prepared for bankruptcy filing a long time. Now your bankruptcy filing day has come. Remember that once you have filed for bankruptcy, you are immediately under the protection of the US bankruptcy court. The United States bankruptcy court and laws now protect you against your creditors.

Creditors can no longer contact you and if they have filed any lawsuits against you, the lawsuits are now suspended. This is the nature of the bankruptcy protection which you just filed for.

Signing bankruptcy petition

When filing bankruptcy, you need to sign your bankruptcy petition which is usually 35 pages long. You must read your bankruptcy petition carefully to ensure that you understand the information on it and everything is accurate. If you are filing for Chapter 13 bankruptcy, you will also have to review the Chapter 13 bankruptcy repayment plan before you sign. You are signing the bankruptcy filing paperwork under the penalty of perjury. That means if you lie or hide something you will be charged with federal crime. The petition for bankruptcy filing will come up in your bankruptcy hearing which follows.

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