If you’re having trouble with your financial obligations, then sometimes you may reach out to a bankruptcy lawyer in Peoria IL after a certain point to learn about bankruptcy options and whether they are right for you. Before you jump up and declare bankruptcy however you should ensure that you have a plan and a strategy, which includes identifying the correct bankruptcy to file as well as the legal representation that will take you through the bankruptcy process. A good bankruptcy lawyer should not only be repaired to take you through the legal process, but they should be prepared to teach you about bankruptcy and explain what the benefits and drawbacks are.
After you decide to declare bankruptcy, your decision will not have been an easy one but it may be the best thing for you.
When you are filing for bankruptcy you should ensure that the following steps are completed such as putting your financial documents together, these documents can include your earnings statements, debt payments, and assets and liabilities. You should ensure that you are prioritizing your payments because while you can skip some expenses, some of them are essential and must be paid. An example of this is if you own car debt, and this is the only car that you have, then you must keep those payments up to date so that you may have the car you need to go to work. Furthermore, you should never lie during bankruptcy, it is actually a crime in bankruptcy court.
You should never take on more credit and if you have a spending issue and you continue to apply for a payday loan to cover your spending issue, this can hurt your bankruptcy case. And of course, again, you should never lie.
The good news is that many people will not face prison over their debts, however, there are a few times where you could be imprisoned over your debts. If you have failed to pay taxes, or court-mandated child support and alimony, and you have made no such attempts to create payment plans to do so, then you could go to jail. If you refuse to pay out debts such as child support, you can go to jail.
But if you merely have credit card debt, medical bills, student loans, or some other kind of debt then you may receive civil lawsuits as long as you go to court and hearings to set up an arrangement to pay down what you owe then you should not have to be worried about jail or imprisonment. However, if you do not appear in court after being ordered to appeal, you can face contempt and that can lead to your arrest.
Thanks to our friends at Pioletti, Pioletti, and Nichols Law for their insight into the bankruptcy declaration process.