Factors to Consider Before Filing Bankruptcy in Rhode Island
Filing for bankruptcy is not always the best course of action. There are a number of factors to consider when thinking about this option.
Some of us may be struggling to pay off our debts and find ourselves just handing our salaries over to our creditors with almost nothing left with which to provide for our families. If in case your gross income is lower than the total amount of your debts, you can file an RI bankruptcy petition. However, not all applications are approved by the Department of Insurance. Although the process of reviewing petitions for bankruptcy is relatively shorter, the ruling court is very strict in considering applications to hear. Below are some factors to consider when you wish to apply for Chapter 7 Bankruptcy.
- There are many types of bankruptcy petitions but the most common is Chapter 7 Bankruptcy.
- You can only be eligible to apply for bankruptcy if your gross income is lower than your total debt. However, the judge will still determine if you have already exhausted your funds and you have no means of soliciting financial assistance from your relatives or friends. Your petition can only be considered if you are currently unemployed even if you are still receiving your separation pay.
- If you have properties like houses, lots, cars, jewelries, and others which are of great value to you, you can ask for seizure protection for it from your lawyer.
- Choosing the most suitable bankruptcy lawyer should be the key to your debt freedom. Be extra vigilant in paying them their service fees. The standard fee must range from $1,200 to $1,500 although there are a few lawyers who offer their clients a little bit lower than that especially if the case is so simple. These amounts already cover the $350 filing fee for the court. There are lawyers who take advantage of their clients and charge them as much as $5,000. Do not fall for these kinds of trap because remember that your goal is to get out of debt and not to pay another humungous unnecessary amount.
- If you have moved out of Rhode Island and still want to get some protection for your properties there, you can still apply for RI Bankruptcy especially if you have lived in that state for at least six months. However, if you are transferring to Rhode Island and you wish to apply for Chapter 7 Bankruptcy, the state laws of your previous location may still be applied.
- The process normally takes three to four months from the date of the filing. Before it, you will have a few meetings with your bankruptcy lawyer to discuss some details. The court hearings are usually scheduled after the first month and the review of your petition takes about two months.
- While your petition is being processed, it is a must for your creditors to stop the collection. Thus, it would be illegal for them to send you notices and demand payments until your application is denied.