Bankruptcy is a process that offers relief from overwhelming debt. Although a lot of people think that bankruptcy must not be thought about, this process is a significant legal tool designed to offer legal or alternative options to manage crushing debt. 

Bankruptcy offers a fresh start to people who are struggling financially. But still, a lot of things need to be clarified about this process. Such misconceptions can confuse and prevent individuals from leveraging the benefits this legal process can offer. As long as you have the best bankruptcy attorney on your side, you can gain the most benefits out of this process. To find the best attorney, click here. Meanwhile, below are common bankruptcy myths you should not believe if you want to free yourself from the financial burden you are currently carrying:

You Fail in Life if You File for Bankruptcy

Filing for bankruptcy is supposed to help you get a fresh start financially. It’s not meant to be a reflection of your worth as an individual or character. Sometimes, debt can hit you hard and bankruptcy offers a way to deal with the situation. 

A lot of popular and successful individuals have filed for bankruptcy. Sometimes, this process is a strategic option to best handle a financial situation. 

Filing for Bankruptcy Means Being Credit-Damaged Permanently

Although bankruptcy will affect your credit score, it does not permanently stain your credit report. A lot of people can rebuild their credit following bankruptcy. Likewise, bankruptcy can help improve your credit. For instance, if you are delinquent on your maxed-out credit or accounts, your credit score may be under 600, which is difficult to improve, regardless of timely payment. After filing for bankruptcy, no debt reporting happens, and new accounts that have a good payment history will steadily help your credit score. 

Did you know that you may be able to purchase a vehicle with a car loan after bankruptcy? The loan interest rate can be better a few months after discharge. Also, you can expect to get a car loan and credit card offers once you file for Chapter 7 bankruptcy because creditors are aware of your inability to file for this type of bankruptcy for eight years. Thus, you are a decent credit risk for these creditors. 

You will Lose All Your Possessions After Filing

If you file for Chapter 7 bankruptcy, your creditors will be paid off by selling some of your assets. But this does not mean you cannot keep anything like your car or house. Every state differs in terms of the at-risk property in bankruptcy cases. Because there are a lot of ways to protect assets, do not sell or transfer assets before you file bankruptcy until you consult with a lawyer. 

Under Chapter 7 bankruptcy, only some assets are liquidated. You can keep your assets since they are protected. If you file for Chapter 13, you can keep all your assets; however, there is a long-term payment plan you must follow. 

Bankruptcy Filing is Time-Consuming and Complicated

Filing for bankruptcy involves some paperwork, but this is a straightforward process overall. A skilled lawyer can guide you through this. A bankruptcy petition includes plenty of financial information like income, assets, expenses, debts, property transfers, payments, and more. Typically, a Chapter 7 bankruptcy lasts from 3-4 months while Chapter 13 often lasts between 3 and 5 years. 

Bankruptcy is a Costly Process

Filing for bankruptcy involves a reasonable cost. For a lot of people, a bankruptcy attorney can be paid for rather than making minimum payments for their credit cards, which can be between 3 and 5 months. Also, if you cannot afford a lawyer, there are options you can explore. 

Enforcing a legal judgment can often be a daunting and complicated process. While obtaining a judgment might feel like a victory, the hard work of collecting on that judgment is just beginning. In fact, creditors frequently face numerous hurdles that can delay or even prevent successful collection.  That is why it is always better to seek the professional assistance of judgment and collection attorneys from wslaw.nyc. 

Here are six common challenges in judgment enforcement and how to overcome them.

1. Locating the Debtor

One of the most significant obstacles is simply finding the debtor. Once a judgment is issued, debtors may relocate or provide false information to avoid payment.

Solution: Utilize skip tracing services or hire a private investigator. These professionals employ various tactics to track down individuals, from searching public records to using sophisticated databases. Additionally, leveraging social media and other online resources can sometimes yield valuable clues about the debtor’s whereabouts.

2. Identifying Assets

Even if you locate the debtor, identifying assets that can be seized to satisfy the judgment can be another challenge. In fact, debtors may try to hide assets or transfer them to third parties.

Solution: Conduct thorough asset searches using professional asset investigation services. These services can uncover hidden bank accounts, real estate properties, vehicles, and other valuables. Subpoenaing financial records can also provide insights into the debtor’s assets.

3. Debtor’s Bankruptcy Filing

If a debtor files for bankruptcy, it can significantly complicate judgment enforcement. Remember, bankruptcy law provides debtors with protections that can halt collection efforts.

Solution: Consult with a bankruptcy attorney to understand your rights and options. In some cases, certain judgments (like those for fraud) may be non-dischargeable in bankruptcy. Filing a proof of claim in the bankruptcy proceedings ensures you’re on the list of creditors who may receive payment.

4. Legal Exemptions

Debtors are often protected by legal exemptions that prevent certain assets from being seized. For example, many jurisdictions protect a debtor’s primary residence, a portion of their income, and essential personal property.

Solution: Familiarize yourself with the exemption laws in your jurisdiction. This knowledge can help you identify which assets are exempt and which are not. Sometimes negotiating a payment plan with the debtor can be more effective than attempting to seize exempt assets.

5. Judgments Expiring

Remember, judgments don’t last forever; they have a statute of limitations. If a judgment is not enforced within a specific period, it can expire, rendering collection efforts futile.

Solution: Act promptly and be aware of the time limits associated with your judgment. Most jurisdictions allow for judgments to be renewed before they expire. Ensure you follow the necessary legal procedures to extend the life of your judgment if you cannot collect within the initial timeframe.

6. Costs of Enforcement

The costs associated with enforcing a judgment can add up quickly. Hiring professionals, filing fees, and other expenses can sometimes outweigh the amount recoverable from the debtor.

Solution: Evaluate the cost-benefit ratio before pursuing enforcement. In some cases, it might be prudent to negotiate a settlement with the debtor, even if it means accepting less than the full amount owed. Some lawyers work on a contingency basis, meaning they only get paid if you collect, which can mitigate upfront costs.

Conclusion

Enforcing a judgment involves a multi-faceted approach, requiring persistence, strategic planning, and often financial investment. By understanding and preparing for these common challenges, creditors can improve their chances of successful collection. In fact, employing professional services, staying informed about legal nuances, and acting within statutory deadlines are crucial steps in overcoming these obstacles.

Toronto, a Canadian city known for its dynamic melting pot of cultures, languages, and rich backgrounds. The city has a vibrant yet intricate social environment. Although living here can be beneficial in many ways, diversity can also lead to criminal conflicts that may result in legal problems. Dealing with Toronto’s criminal justice system can be particularly daunting for every citizen. 

Yet, in cases like these, the expertise of Toronto criminal lawyer is extremely valuable. They provide essential guidance and representation throughout the legal process. 

Common Criminal Charges and Legal Actions in Toronto

In Toronto, criminal charges have their own severe and lasting consequences. There are various criminal charges encountered in Toronto, which are:

Impaired Driving

Impaired driving is a prevalent criminal charge in Toronto. This offence involves operating a vehicle while under the influence (DUI). Being convicted of impaired driving can result in severe consequences, including fines, license suspension, and possible imprisonment. It is important to consult with a Toronto criminal lawyer quickly. They can navigate the intricacies of these charges and lessen the consequences.   

Assault

Assault charges can vary from minor assault to severe assault. Possible outcomes involve substantial fines, community service, or incarceration. These will depend on the seriousness of the situation. However, Understanding the details of your case and having a defence strategy is crucial when dealing with assault charges.  

Drug Possession

The charges for possessing drugs can differ with the type and quantity of the substance caught by police. Possible consequences include monetary penalties or jail time. Getting legal advice right away can assist you in comprehending your choices and creating a defence.

Theft and Fraud

Theft and fraud charges cover a wide range of behaviours, such as shoplifting and large-scale embezzlement. Convictions can result in serious consequences. A person may charge for large monetary penalties and extended periods of incarceration. Swift legal action is essential to safeguard your rights and possibly mitigate the penalties. 

The Criminal Justice Process

When someone is involved in criminal justice, they may have to complete the following procedures: 

Arrest

The arrest marks the start of the criminal justice process. If you are arrested, staying calm and being aware of your rights is crucial. You can choose to remain quiet and have a lawyer present. Getting in touch with a criminal defence attorney immediately can make sure your rights are safeguarded from the beginning.  

Bail

Following the arrest, the subsequent step is the bail hearing. This decides if you can be let go from jail while waiting for trial. An experienced Toronto criminal lawyer can make a compelling argument for your release by demonstrating that you do not present a risk of fleeing or endangering the community.

Trial

The trial procedure is when your case is presented to a court. Your defence attorney will dispute the proof provided by the prosecution. Also, he will present your perspective. A thorough understanding of the law and a strategic defence plan are essential for a favourable outcome. 

Sentencing

If found guilty, sentencing occurs after the trial. Penalties for offences can vary from fines to life in prison. Based on the circumstances of your case, an attorney can argue for the most lenient punishment. 

Building Trust and Relationships With Your Lawyer

For any case’s positive outcome, a strong attorney-client relationship is paramount.

Attorney-Client Privilege

The attorney-client privilege guarantees that all communication between you and your lawyer remains confidential. This benefit fosters transparent and sincere discussions. This can enable your lawyer to construct a stronger defence.

Communication and Support

A Toronto criminal attorney emphasizes clear and consistent communication. They realize that dealing with criminal charges can be overwhelming. They aim to offer assistance and direction throughout the process. The lawyer ensures that you are regularly updated on the status of your case and ready to address any inquiries you may have. 

Client Testimonials

Client testimonials help establish trust and form relationships with your lawyer through the authentic accounts of previous clients. Positive feedback emphasizes the lawyer’s skills, trustworthiness, and achievements in managing cases, assuring potential clients of their abilities and building trust in their offerings.

Emerging Legal Issues in Toronto

Remaining up-to-date on recent developments in criminal law is essential due to the ever-changing legal landscape of Toronto.

Recent Updates in Criminal Law 

New laws can greatly affect people who are facing criminal charges. For instance, new rules on impaired driving and drug possession have changed legal standards and penalties. If you blow over the legal limit, you can be criminally charged. Hence, comprehending these changes is crucial for a successful defence. 

Dealing with Legal Obstacles

It is crucial to comprehend changes in criminal lawsuits and their impact on your case. The layer remains informed about the most recent legal advancements to offer a top-notch defence.

Final Thoughts

Facing criminal charges in Toronto is a serious issue for any individual. Hiring a Toronto criminal lawyer is a step toward protecting one’s rights in legal matters. From advising at the beginning of your case to solving the complexities of the local legal system, a criminal lawyer plays a vital role. Check out downloadable legal guides in your area for more insights into the criminal justice process.