Personal Bankruptcy

Written By: Emil FleysherNovember 12, 2021

What Are the Rules of Personal Bankruptcy?

Filing for personal bankruptcy is an option to provide some financial relief. Before deciding to file for it, there are some questions that need addressing about your income, your position under the bankruptcy laws, and the expenses you should continue to keep paying.

In 2005, new bankruptcy legislation went into effect, making the ability to declare personal bankruptcy more difficult. This new legislation also made liquidating your assets and starting over with a clean, fresh credit history considerably more difficult to do as well. This factors into the potential of not being eligible for bankruptcy. 

The latest personal bankruptcy laws outline the following:

  • Mandatory credit counseling within 180 days before filing bankruptcy.
  • Pay stubs received within 60 days before bankruptcy must be filed with the court.
  • Creditors are entitled to a copy of the most recent tax return.
  • Mandatory attendance at a financial management class after filing.
  • Increased attorney fees and court filing fees.

How Do You File for It?

Individuals can choose from a variety of personal bankruptcy options. Before filing, it might help to do some research or speak with a bankruptcy attorney. You would also have to analyze the financial state you’re in to determine which bankruptcy option is appropriate for you. After that, you will be able to choose between Chapters 7, 11, or 13.

Personal bankruptcy should be a last resort. Wiping away your obligations and starting over does sound enticing and the positive outcome is that you won’t be digging yourself deeper into debt.

To file for bankruptcy, you would need to compile a list of all your assets, obligations, debts, and creditors. You would need to keep track of your present income and expenses, gather financial statements and any sort of contracts and leases, and provide copies of your two most recent tax returns, a credit counseling certificate, and any debt repayment plans.

Have Questions About Personal Bankruptcy? Call a Bankruptcy Attorney Today.

The Law Offices of Emil Fleysher P.A. is a full-service law firm that helps individuals in South Florida discharge debts in bankruptcy when there are no remaining options. Whether you require an individual bankruptcy filing or need to file bankruptcy for your business or yourself, then call our office at 888-886-0020 to schedule a consultation today.

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