Being overwhelmed with debt and financial problems is extremely stressful. When you file for bankruptcy, the bankruptcy process must follow all relevant bankruptcy laws. Bankruptcy rules must be strictly followed to have the best possible outcome in a bankruptcy proceeding. When done correctly, filing a bankruptcy petition will help you stop foreclosure, garnishment, and repossession. Consulting a bankruptcy attorney who is experienced in handling bankruptcy cases is necessary. That is if you want to have a successful bankruptcy filing which leads to a discharge and not a dismissal.
Filing bankruptcy begins when a debtor files a petition at the bankruptcy court. Any petition in bankruptcy is carefully scrutinized. Once it has been approved, an automatic stay immediately takes effect to protect the filer from creditor harassment and wage garnishment. Struggling with debt problems is not easy. As such, one of the main objectives of an individual who decides to file for bankruptcy is to have certain debts discharged.
You may be able to obtain bankruptcy discharge, depending on the types of debt you owe. Unsecured debts such as credit card bills and medical bills may be wiped out. In contrast, secured debts, child support, alimony, certain tax debt, and student loans would likely not be included in the discharge.
A bankruptcy lawyer would advise you after looking carefully into your current situation. You will be advised on what bankruptcy options are feasible and beneficial, especially based on your ability to repay or make monthly payments to your creditors. Finding a lawyer specializing in managing bankruptcies is crucial for a successful filing. Some bankruptcy proceedings may be more complex than other bankruptcy cases, especially when the filing chapter is taken into account. If you filed bankruptcy, you must ensure that your bankruptcy attorney is knowledgeable and experienced in either liquidation or reorganization.
Note that there are varied types of bankruptcy that are appropriate for each case. You must first be familiar with the different bankruptcy chapters, understand their nuances of each one, and choose what is best for you before declaring bankruptcy.
When filing for bankruptcy under Chapter 7 (liquidation bankruptcy), you must first pass a means test wherein your monthly income must be below a certain amount and your nonexempt assets will be liquidated by a bankruptcy trustee. Afterward, the trustee will be the one to distribute the funds to debt collectors.
Meanwhile, in a bankruptcy Chapter 13 (reorganization bankruptcy), you may be able to retain your assets by negotiating to pay all your debts through a repayment plan. This chapter usually takes up to three to five years.
It is recommended that you go through reviews of the prospective bankruptcy attorney before hiring them. Ask them about their experiences in handling bankruptcy filings. Decent bankruptcy lawyers would give you an estimate of the bankruptcy costs such as attorney fees and inclusions, which will help you avoid dealing with hidden charges.
Ask your attorney to explain in detail how long the bankruptcy procedure will take. You must be regularly updated regarding your bankruptcy petition. It could be through email or by phone call. Make sure to choose a lawyer that will communicate with you using a method that is preferred and convenient for both of you.
Note that bankruptcies may affect your credit score and you can lose your properties. Bankruptcy attorneys will help you before, during, and after bankruptcy so you should not worry about these potential risks. After bankruptcy, lawyers can even help you have a fresh start and improve your credit score.
Bankruptcy filing helps you get back on track and secure your financial future. If you are considering bankruptcy, call our law firm for legal help and assistance. We provide bankruptcy services for both Chapter 7 and Chapter 13 bankruptcies. Contact WantAFreshStart, LLC now for a free legal consultation.