The Right Bankruptcy Questions To Ask During A Consultation

  When considering bankruptcy, it is essential to know what questions to ask during a consultation with a bankruptcy attorney. This will help ensure that you understand the process and what to expect. Here are some of the most important questions to ask:

1) What is the list of non dischargeable debts?

Nondischargeable debts are those that cannot be eliminated through bankruptcy proceedings. These include, but aren't limited to, federal, state, and local taxes, student loans, child support, alimony, money borrowed on credit, etc. If you are stuck with bankruptcy in Kelowna and do not know how to release yourself from this situation, consult an attorney for support right away. 

2) What debts cannot be discharged in bankruptcy cases?

The following debts cannot be discharged in bankruptcy:

• unpaid taxes
• Child support and alimony
• Student loans
• spousal support obligations
• Court fines and penalties
• judgment from drunk driving accidents

3) What is the list of debts discharged in bankruptcy?

• Credit card debt
• Medical bills
• Personal loans
• Payday loans
• Utility bills
• Lease and rental agreements
• Certain business debts

4) What are some common mistakes people make when filing for bankruptcy?

• Failing to list all debts: You must list your debts, including credit cards, medical bills, personal loans, and other debts, to have them discharged.

• Failing to list all assets: You must also list all assets, including your home, car, savings account, retirement account, and other property.

• Forgetting to comply with the bankruptcy court's orders: If the insolvency court issues an order, you must comply. 
• Filing for bankruptcy without consulting an attorney: It is a complex legal process, and it is essential to consult with an experienced insolvency attorney before filing.

5) What happens if I ignore debt collection letters?

If you ignore debt collection letters, the creditor may take legal action against you. This could include garnishing your wages, filing a lawsuit, or levying your bank account.

6) How much does it cost to file for bankruptcy?

The cost of filing for bankruptcy varies on the type of bankruptcy you file. Chapter 7 bankruptcies typically cost between $1,000 and $4,000, while Chapter 13 bankruptcies may cost between $3,000 and $5,000.

7) What are some tips for avoiding bankruptcy?

• Working with a credit counsellor or debt management company to negotiate with your creditors

• Create a budget and stick to it

• Making a plan to pay off your debts

• Cutting back on your expenses

• Increasing your income by getting a second job or working overtime

8) What are some common myths about insolvency?

There are several common myths about insolvency, such as:

Insolvency means you lose everything you own: This is only sometimes the case. Depending on the type of insolvency you file, you may be able to keep some or all of your assets.

It will ruin your credit: While insolvency will stay on your credit report for seven to ten years, it is not the world's end. You can rebuild your credit by making on-time payments and maintaining a good payment history.

You can only file for insolvency: However, you can file for bankruptcy multiple times. 

Insolvency is easy: The bankruptcy process is not easy. Therefore, consult an experienced insolvency attorney to ensure that you take the proper steps.

9) What type of insolvency should I file?

There are two main types of consumer insolvency: Chapter 7 and Chapter 13. Chapter 7 bankruptcy allows you to discharge most of your debts, while Chapter 13 requires you to repay a portion of your debt through a repayment plan.

10) What are the eligibility requirements for filing for insolvency?

To be eligible for insolvency, you must pass a means test. Therefore, this test determines whether your income is low enough to qualify for Chapter 7 bankruptcy. If you do not pass the means test, you may still be eligible for Chapter 13 insolvency.

11) How will bankruptcy affect my credit?

Insolvency will stay on your credit report for up to 10 years. Thus, filing for insolvency may help you improve your credit over time by allowing you to rebuild your credit history.

12) What are the consequences of not filing for insolvency?

If you do not file for bankruptcy, you may face foreclosure, wage garnishment, and other legal actions from your creditors. You may also be unable to obtain new lines of credit.

13) How long does the bankruptcy process take?

The length of the default process varies depending on the type of insolvency you file. Chapter 7 bankruptcies are typically completed within four to six months, while Chapter 13 bankruptcies may take three to five years to complete.

14) What are the long-term effects of insolvency?

The long-term effects of insolvency depend on your circumstances. However, some potential long-term effects include difficulty obtaining credit, higher interest rates on future loans, and a negative impact on your credit score.

15) What are the alternatives to insolvency?

There are several alternatives to bankruptcy, such as debt settlement and debt consolidation. However, these alternatives may only be suitable for some. It would help if you spoke with an insolvency attorney to determine whether these alternatives suit you.

16) What happens to my assets if I file for bankruptcy?

What happens to your assets in insolvency depends on the type of insolvency you file. In Chapter 7, insolvency, most of your assets will be sold to repay your creditors. Moreover, in Chapter 13 bankruptcy, you can keep your assets if you can afford to repay your debts through a repayment plan.

17) What are the risks of filing for insolvency?

Several risks are associated with filing for insolvency, such as losing your assets, damaging your credit, and having to make difficult financial decisions. You should speak with a bankruptcy attorney to determine if these risks apply to you.

Conclusion

Bankruptcy is stressful. However, with an experienced bankruptcy attorney, you can take the proper steps and understand all the risks involved. Follow this blog to get a brief overview of what to aks and what to avoid asking your attorney during meetings. 

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Created on Dec 13th 2022 07:08. Viewed 174 times.

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