Simple Or Complex: What Type Of Bankruptcy Will You Have?
When financial problems threaten to take over your life, you must act. The longer you wait the worse your issues will become. The speed and cost with which your bankruptcy proceeds depends upon a wide variety of factors, so read on to learn more about the difference between a simple bankruptcy and a more complex bankruptcy.
What is a Simple Bankruptcy? Unlike a simplified divorce, you won't find this type of bankruptcy listed in the codes. It's easy to define what a simple bankruptcy is, however, and if your bankruptcy is typical of most consumer filings – it's simple.
1. The cost is confined to the court filing fee and paying your attorney's fee.
2. You will have only one appearance, which is the creditor's meeting.
3. You will be completely finished with your chapter 7 filing is less than half a year (in most cases).
The cost for complications will rise when it comes to attorney's fees since the amount you usually pay only covers basic services. Additionally, when related court cases and appearances eat up time, your wait time until the final discharge can be extended by months and months. Here are a few bankruptcy issues that could hold up your case and increase the cost factor.
Debt Collection Activity – If you waited so long to file bankruptcy that you are now suffering from issues like foreclosure, repossessions, wage garnishment, property liens, and court judgments, that can make for a more complicated bankruptcy. Expect to pay more and for things to take longer than usual since each of these issues will need to be addressed in different ways. Taking action sooner could prevent this issue.
Assets and Income – Those with incomes higher than the state's median will have to undergo means testing. In some cases, your attorney will need to file additional paperwork showing that you have a need to file. If you have a lot of assets, inspections of property needs to be accomplished. Discuss this issue with your attorney and consider delaying your bankruptcy if your income is expected to be lower in the future.
Fraud – This is a serious matter but filers don't always intentionally commit bankruptcy fraud. In some cases, creditors will object to the use of a credit card too near the time you filed bankruptcy. You must show that the use was not frivolous and was for an important need. You can expect creditors with objections to file a separate case against you – one that must be resolved prior to the bankruptcy being final. Find out about how credit card use is regulated prior to a filing before you file.
It's best to speak with your attorney and be upfront so that a filing can be timed correctly or actions may be taken prior to filing to prevent unnecessary delays and costs. Reach out to a firm like McFarland & Masters LLC to learn more.
