5 Important Questions to Ask Before Filing for Bankruptcy

While dealing with the financially trying situation, it is only natural to consider the option of filing for bankruptcy. while bankruptcy can wipe off a majority of your debts and helps you get back into solid footings for your finances, it is never your first option. However, if you are actually considering filing for bankruptcy, then you must get to know the answers to these following questions and also get help from an experienced Pittsburgh bankruptcy lawyer.

Will You Lose All Your Assets When You are Filing for Bankruptcy?

For consumer bankruptcy, there are only two types. You can either file for Chapter 7 bankruptcy or chapter 13 bankruptcy. When you are filing for Chapter 7 bankruptcy, generally, the court will appoint a trustee who will decide to liquidate your assets to pay off your debts. Now, even though this sounds quite scary, there is an option for you. In Pennsylvania, you get the options for state and federal exemptions that offer protection for your house, car, and similar assets. This way you can save your assets too. If you are filing for Chapter 13 bankruptcy, you automatically get to keep the assets safe. You only have to follow a repayment plan to pay off your debts. Depending on your financial situation, you need to choose the type of bankruptcy.

Will You Get Relieved of Medical Bills When You File for Bankruptcy?

In America, the expenses due to medical bills are always high. People have to pay thousands of dollars even when they have health insurance. Hence, often for people suddenly dealing with a huge medical bill becomes difficult and it forces them to file for bankruptcy. If you are filing for Chapter 7 bankruptcy, you will get relieved from paying your medical bills as they will be unsecured debts. If you are filing for Chapter 13 bankruptcy, your medical bill will be restructured and you will get more time for paying it.

Do You Still Have Time to File for Bankruptcy?

Depending on the status of your debts, it can be decided by your Pittsburgh bankruptcy lawyer whether you can file for bankruptcy or not. Even if you have received the notice of foreclosure, repossession, and even a lawsuit, it will be possible to file for emergency bankruptcy to stall all these actions against you.

Do You Need to Complete Credit Counseling?

Credit counseling is meant to make you understand what got you in a situation like bankruptcy. And in Pennsylvania, when you are filing for bankruptcy, it is compulsory to show the court that you have completed your credit counseling. You will be required to get 1.5 hours of counseling. This can be done virtually too in any language. But you have to choose an agency that is approved by the court.

What is Your Next Step After Filing for Bankruptcy?

When you are filing for bankruptcy, even after it is discharged, it remains in your credit record for up to 10 years. Hence, it is a better idea if you are focusing on your reconstructing your credit better and taking control over your financial matter so that whatever spending led you to file for bankruptcy, doesn’t happen again. Consult an experienced Pittsburgh bankruptcy lawyer to know what you need to do next.

For further details on bankruptcy, come to Pittsburgh Bankruptcy Law Group so that we can offer you more assistance in your case.

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