Filing for bankruptcy is the primary process in the legal act of bankruptcy. Bankruptcy attorneys are extremely important in helping to file cases, prepare the relevant documents and go through the process properly.
On Filing for Bankruptcy
The process of filing for bankruptcy is when an individual applies to a court or a similar judicial body for the purpose of being declared, legally, as bankrupt. The importance of this process lies in the fact that it is the initial point on the road to bankruptcy.
The process of filing for bankruptcy is extremely difficult as there are a number of laws and other regulations that have to be kept in mind while carrying out this process. The cases also have to be conducted as any type of failing on part of the debtor would affect his chances in the present and future bankruptcy cases filed by him.
Importance of Bankruptcy Attorneies
Attorneys are the cornerstone in the bankruptcy process. Very often individuals will attempt to represent themselves in such cases. However, the chances of success in such cases are low. For businesses, it is almost mandatory to have an attorney while filing for bankruptcy.
Listing of Properties and Debts
One of the most important procedures in case of filing for bankruptcy is listing of properties and debts. The applicants are legally bound to provide all the details of the properties owned by them and the debts they owe. This has critical legal implications that are made evident by the fact that if the debtor does not provide the details of a debt he would have to pay it.
Adherence to Rules
It is important for the bankruptcy applicants to maintain strict adherence to rules of bankruptcy as they apply in the particular geographical area while filing for bankruptcy. Nowadays, it has become easy to obtain information on the bankruptcy rules as they are available on the websites of the bankruptcy courts.
Prior to filing for bankruptcy an applicant should go for credit counseling services from a services provider who is certified. There are definite time restrictions as to when these services may be obtained. The applicants also have to get documentations of having availed their services like a certificate of credit counseling and a statement of compliance for example. If the applicants fail to observe these rules that would have severe legal implications. Their cases may even be declared null and void by the judicial body.
Precautions while Filing for Bankruptcy
The applicants need to take some precautions while filing for bankruptcy as these might hamper their prospects. Under normal circumstances, the applicants should be aware of the various fraudulent and phony foreclosure offers and petition preparers. They should always consult the legal authorities before taking any step.
Last Updated on : 10th July 2013