Filing for Bankruptcy – What You Should Know

If you find yourself filled with anxiety because of your towering debt, you might be considering filing for bankruptcy. For businesses and individuals, filing for bankruptcy is a last resort in salvaging whatever is left of their company or property. It is also their way out from debts that they can no longer pay.

If you are from PA and you need to be discharged from your debts, a bankruptcy law firm in Pittsburgh can help you find a relief. Before doing so, here are the things that you should know.

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It Is Not A One-Time Process

A bankruptcy case like even for individuals (Chapter 7) can take up to 6 months to conclude. Business bankruptcies takes longer and if you really want to get discharge, you have to finish this fight in court.

Your Financial Information Becomes Public

After filing for bankruptcy, you have to open your finances to public enquiry. This is not limited to your financial information because it includes your entire family’s financial information. You also have to attend inquiries where a bankruptcy trustee will ask for your financial information in the presence of your creditors. You even have to answer a bankruptcy form that comes with complex and tricky questions.

You Have to Disclose Everything

Bankruptcy courts will triple check all information you submitted upon filing for a bankruptcy. A single information that casts doubt can be a ground for your request to be declines. In the US, dishonesty in filing for bankruptcy is considered as a federal crime and a serious one.

The Result of Your Bankruptcy Case Is Personal

If your bankruptcy file gets discharge, it means that your creditors are no longer allowed to hound you to collect your debt. This will only protect you though. If you are a guarantor of a debt made by a friend, your friend still needs to pay that debt. Your bankruptcy case doesn’t discharge him from that liability.

Lastly, once you filed for bankruptcy, you might find yourself unable to take loans. It will affect your credit standing for at least two to three years. In addition, filing for bankruptcy is not cheap and it is time consuming. If you will need a bankruptcy law firm in Pittsburgh, PA, make sure to choose an experienced and known law firm in this practice.

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