Challenges People Commonly Face When Preparing To File For Bankruptcy
When people decide to file for bankruptcy, most of them will experience at least one or two challenges during the process; however, some may experience even more than this. Experiencing challenges during this process is normal and expected, and your lawyer will be there to help you learn what these challenges will be and how to get through them. Here are some common challenges people face when filing for bankruptcy.
Passing the means test
One of the first things a lawyer will do when meeting with a potential client is perform the means test. This is a standardized test used by all bankruptcy lawyers in this country, and this test is designed to reveal whether a person qualifies for Chapter 7 bankruptcy. A person that passes the test will qualify for Chapter 7, but a person that fails the test will not. This person may qualify for Chapter 13, though. If you really want to file Chapter 7, but cannot pass the means test, your lawyer will determine what to do. Passing the means test can be a big challenge; however, there are times that people can pass it just by waiting a few months before attempting to take the test again.
Protecting the things you own
A second challenge you may face is finding ways to protect the assets you own. In bankruptcy, lawyers try to exempt as many assets as possible when helping a client with a bankruptcy case. There are times when lawyers find ways to do this, so that the clients can keep their things, but there are also times when there is no way to do this.
Creating an affordable repayment plan
If you end up filing for Chapter 13, a big challenge you might face is creating a repayment plan that is not only affordable but that is also fair enough that the trustee will accept it. With Chapter 13, you must complete a repayment plan, and this plan lasts for a time period of three or five years, depending on the amount of money you earn.
These are three common challenges a lot of people face when filing for bankruptcy. If you are thinking about filing, you should expect some challenges along the way; however, hiring a good lawyer will be beneficial for you, as he or she will help you get past these challenges. You can learn more by contacting a bankruptcy firm today. For more information, check out websites such as http://www.taylorcrockett.com.