If you are currently struggling with debt, you know how difficult your situation is and you may want to consider filing for bankruptcy. Bankruptcy can relieve you from the financial stress you are facing. When you file for bankruptcy, you will no longer get constant calls from your creditors. But, it is still a complex process to navigate. So, if you are considering it as a last resort, you should consult a skilled Bankruptcy lawyer in Las Vegas to know more about the process and what to expect after the case is over. Keep reading to know more about the bankruptcy process:
How Long Will It Take?
The bankruptcy process takes longer than a case handled in a small claims court. When you file for Chapter 7 bankruptcy, your case could take between 4 and 6 months. For Chapter 13 bankruptcy, you may need to wait even longer for the process to be completed. During this process, your debts are restructured, so they can be paid off over an extended period. Typically, this can take 3-5 years.
Bankruptcy Records are Public
During bankruptcy, you should expect your financial life to be on display. Your bankruptcy records are available to the public. Also, during the process, you will need to file schedules, which involve a lot of paperwork that contains information about your debts, expenses, income, assets, and financial transactions. In addition, you will need to attend a creditors’ meeting, which is held in a public room.
The Bankruptcy Process is Complex
Do not think that bankruptcy filing is just about filing forms. However, these are complex forms that include difficult questions. You need to have an attorney on your side when filling out these forms to avoid mistakes that can ruin your bankruptcy efforts altogether. Your attorney should help you understand these forms first and make sure you possess all important information.
You Should Be Honest About Everything
While every aspect of the bankruptcy process is embarrassing, you should stay honest at all times. Failure to disclose the information or lie about it can only waste your time and effort. The court will then not discharge your debt. In fact, it could charge you of bankruptcy fraud, which tends to carry serious consequences.
Your Credit Will Suffer for Years
Filing for bankruptcy will impact your credit score. Because bankruptcy can stay in your report for 7 years, it can make it hard to get a loan or credit. But, you can use this time to improve your credit score. Just look for creditors who will offer you a credit card or let you take out a loan.