A lot of people end up having to file bankruptcy when they never would have expected to be in this position before. This is because a lot of things can happen that are out of people’s control. Many people think that as long as they are responsible with money at all times, they will never have to file bankruptcy. However, this is not necessarily the case at all, as many people end up losing all their money even when they were responsible.
There are many bankruptcy lawyers who will be able to help you if you need to file bankruptcy. They will be able to explain different concepts within the realm of bankruptcy to you. For example, they can explain how a chapter 7 bankruptcy works and if this is the right option for you. They can also tell you exactly what active bankruptcies tend to do to people, and they can explain all types of bankruptcies and ultimately help you decide which type of bankruptcy is most appropriate for your situation. You may also have miscellaneous questions about bankruptcy. For example, you might wonder, are personal bankruptcies public record? A lawyer will be able to answer these types of questions as well.
A Philadelphia bankruptcy claim may not get far without the help of a Philadelphia bankruptcy lawyer. The help they can be provided for you through Philadelphia bankruptcy lawyers can make a big difference in whether or not your claim is accepted. There are several forms of bankruptcy. Filing for personal bankruptcy is unique from filing for business bankruptcy. Two different chapters of personal bankruptcy exist for every state in the union, even though each state has its own rules when it comes to how much bankruptcy will cover your existing debt. Bankruptcy will eradicate certain death, but it is not a total answer to all of your financial problems.
If you are not able to cover the cost of your debt, make sure that a Philadelphia bankruptcy attorney helps you understand each chapter of bankruptcy. Chapter 7 bankruptcy refers to liquidation of assets in order to cover debts. Chapter 13 bankruptcy refers to restructuring debt so that you can make payments over a period of three years or over a period of five years to pay back the money that you owe creditors. A means test is typically provided by a Philadelphia bankruptcy attorney before you will be considered for bankruptcy. A means test determines your current income, financial net worth and whether or not you are a high risk factor for paying off your debt moving forward. Learn more about how to improve your chances of passing a means test by working with a Philadelphia bankruptcy attorney.