The last couple of years have been pretty difficult for us all. Thanks to the events of covid, our economy has really struggled and a lot of people have been left in poor economic positions. A lot of us lost our jobs at the start of Covid and even though the working world is now a lot better, that does not mean that the years between were not difficult. A lot of people ended up in really bad positions and some people fell into bankruptcy. If you are one of the people that fell into bankruptcy, it is important to understand your rights.
Speaking to a Lawyer
The bankruptcy process can be really stressful and even more confusing. The last thing that you want is to not know where you stand and so it is important that you speak to someone that can give you all of the advice and information that you need. If you live in san diego, I would suggest that you get in contact with the San Diego bankruptcy law center and they can advise you on all the steps you need to move forward.
Discharged From Bankruptcy
Something that you will be glad to hear is that after a year, you will eventually be discharged from bankruptcy. When you are discharged from bankruptcy, you are essentially freed from all of the debts that you have. If you have any debts that have not been covered by your bankruptcy, you still need to pay it back and so you need to figure out your financial situation. There are some rare cases in which it will take longer for your bankruptcy to be discharged and some people are lucky to be discharged within 4 months.
Keeping Your Home
One of the biggest fears that people have when it comes to bankruptcy is the risk of losing their home. If you have some pretty high debts and you own your home, it is likely that your home will be sold in order to take away some of your debts. If you are someone that has a partner and children, then you can prevent your home from being taken for a while, as you will need time to make other arrangements. If you have a shared mortgage, you can get your partner to buy your stakes in the home, as this will stop the home from being sold on.
Access to Your Bank Account
When you have to declare bankruptcy, you have to stop using your checkbooks and you are also unable to use your bank cards. When you declare bankruptcy, your bank is then frozen and you are no longer able to use it. If you have any money in your bank account, this will be taken and out towards any of the debts that you may have. If you know that you are going to lose your accounts, you need to find an alternative source where you can get your money from, which may be a partner’s account.
Rebuilding Your Finances
One of the most difficult things that you will encounter when you have filed for bankruptcy is trying to rebuild your finances. It can be a very difficult journey to start again and it is something that will take some time, but will slowly improve. The first step is paying off your debts, you can usually arrange payment plans that will allow you to pay the money you owe back slowly. Rebuilding your finances is going to be a long journey, but you will eventually find your feet once again.
Getting a New Bank
When your bank is frozen, it is likely that your bank will close your account entirely. Having no bank account can be really challenging and it is not easy for you to go about your daily business without access to an account. You will have to contact a new bank and you will have to disclose the fact that you have experienced bankruptcy and you then need to have a meeting with them where they will decide whether or not they want you to make a bank account with them. They have every right to reject your bank application, which means that you will have to meet with a few banks.
