Find a Bankruptcy Lawyer Near Me
January 28, 2022 | Bankruptcy
Have you fallen behind on your rent, mortgage and bills? Are your creditors and debt collectors constantly calling and knocking at your door? Filing for bankruptcy may seem like the only way to get some peace of mind. If this is the path you’ve chosen, the following are the steps you will need to follow.
Steps to take when filing bankruptcy
- Find a bankruptcy lawyer
This is one of the most important steps to take in filing bankruptcy. An experienced bankruptcy lawyer can guide you on whether or not bankruptcy is the best option for your situation. They will assess your case and help you determine the best approach to filing bankruptcy. Your attorney will guide you through the entire process and help ensure that your best interests and legal rights are protected.
- Decide which type of bankruptcy you’re filing
It is important to determine which type of bankruptcy will serve your needs. A bankruptcy lawyer can help you determine which type of bankruptcy would be most suitable for your situation. Chapter 13 and Chapter 7 are the two most common types of bankruptcies filed by individuals.
Chapter 7 bankruptcy involves consolidating your assets and selling them to pay off your depts. Certain assets such as your home will be protected but much of your other property will be sold. Remaining debts that are eligible will be discharged and you won’t have to repay them.
Chapter 13 bankruptcy protects many of your secured assets. It stops creditors from collecting on their debts and gives you time to reorganize your debts. You will be given more time to pay off your debts and be allowed to keep your assets.
- Complete your credit counseling
You will need to complete credit counseling in order to be eligible to file bankruptcy. There are various agencies that offer credit counselling courses that are approved by the US Department of Justice. You will have to complete your course within 180 days prior to filing for bankruptcy. You can search the Department of Justice’s website for the list of approved agencies in your judicial district or state.
- File your bankruptcy petition
Having completed your course, you are now eligible to file for bankruptcy. Your bankruptcy lawyer will file a petition to your federal jurisdiction. They will also pay the federal filing fee. Your filing should include listings of your real estate assets, personal property and other assets and liabilities you may have. It should also include all debts as well as the names of co-debtors, contracts, leases, expenses and a statement of your monthly income.
If you’re filing for bankruptcy under Chapter 7, you will need to include a means test calculation form. This form determines whether your income qualifies you to file for bankruptcy under Chapter 7. If you’re filing for Chapter 13 bankruptcy, you will need to submit a repayment plan. This should be submitted within 14 days of filing your bankruptcy petition.
When you submit your statement of monthly income as well as your means test calculation, an independent bankruptcy trustee appointed by the court will analyze your documents. Your income will be compared with your state’s median income at the time of your filing. This comparison is used to determine whether you are eligible to file for bankruptcy under Chapter 7 or should instead file under Chapter 13.
- Take a course in debtor’s education
You will be required to take and complete a course in debtor’s education after filing your petition. These courses are offered by the credit counseling agencies approved by the US Trustee Program. You can check their website for a list of approved courses in your jurisdiction.
- Attend a creditors meeting
Your case trustee will call for a meeting between you and your creditors between 21 and 40 days after the filing of your bankruptcy petition. You will be required to attend the meeting and answer questions under oath about your finances and assets. These questions will be asked by your creditors as well as your case trustee.
The case trustee will file a report about the outcome of the meeting to the court within 10 days of the meeting. They will advise the court about whether you qualify to file bankruptcy under Chapter 7 or Chapter 13.
- Liquidation of assets
If you applied for Chapter 7 bankruptcy your court appointed trustee will liquidate all nonexempt assets and pay creditors that have filed claims with the court. If all the assets you own are exempted, a ‘no asset’ report will be filed with the court by the trustee. As a result, your unsecured creditors will not receive any distributions.
- Court decision
The court will make a decision on your case. For Chapter 7, the judge will make a decision on whether or not to discharge your remaining debts. You will not have to appear before a court for this. If you filed under Chapter 13, you will have to appear before the judge for the confirmation of your repayment plan.
- Implement your repayment plan
If the court approves your repayment plan when filing for Chapter 13, you can begin to implement it immediately. Once you have completed all payments as required by the repayment plan, the court may discharge some of the remaining debts. You will not be required to repay these creditors thereafter.
If you believe that filing bankruptcy is the best and only option left for you, contact us. Make an appointment to speak with an experienced bankruptcy lawyer for guidance through the process.
Find a Bankruptcy Lawyer Near Me