Get the Assistance You Need With a Bankruptcy Lawyer
You can contact us for legal assistance with filing bankruptcy and learn more about the process here.
What You Can Expert From Your Bankruptcy Attorney
Filing for bankruptcy is a major decision, but one that can ultimately put you on the path toward a better financial situation. You can get out from under burdensome debt with bankruptcy, and for many, it is the best available option. Understanding the process and what goes into it can be difficult, which is where a bankruptcy lawyer can step in to help.
Bankruptcy attorneys can provide legal advice, handle all the paperwork from start to finish, and walk you through the entire process. Bankruptcy cases can vary based on a number of factors including whether you file for Chapter 7 and Chapter 13 bankruptcy, whether the bankruptcy trustee will sell any of your assets, if you own a business, and if there is any litigation associated with your filing for bankruptcy.
Represent You at Hearings
There is a mandatory meeting in the bankruptcy process known as the 341 meeting of creditors. There may be additional hearings depending on the extent of your case. These could include Chapter 7 reaffirmation hearings, Chapter 13 confirmation hearings, or a hearing brought on by you, your creditors, or the trustee filing a motion. Your attorney may be able to stand in your place at these hearings. If you do attend, your attorney can advise you on how to proceed.
Receive Sound Advice
First and foremost, a competent and experienced bankruptcy lawyer will be able to review your financials and determine whether bankruptcy makes sense for you. If your lawyer that bankruptcy is a good option, they should walk you through Chapter 7 and Chapter 13, what to expect during the process, and what difficulties you may face along the way (if any).
Handle and File All Associated Paperwork
There is a lot of paperwork associated with filing for bankruptcy. A reputable bankruptcy attorney should have some type of software available to sift through and fill out the paperwork. From there, the software can file the paperwork with the associated court. You will need to provide all financial information to your attorney, including your income, expenses, assets, and debts. These items will all go into the paperwork and help shape the outcome of your bankruptcy case.
Different Chapters of Bankruptcy
Chapter 11 Bankruptcy
Individuals and businesses can enter into Chapter 11 bankruptcy. This chapter is often classified as a reorganization of a business. Debtors are able to restructure a plan to pay back their creditors over time. A trustee appointed by the court must approve the plan. The trustee oversees the planning and implementation of the plan, paying close attention to whether the individual has the business or income to proceed. Once you complete the plan, all other debts under the bankruptcy are dismissed.
Chapter 7 Bankruptcy
Chapter 7 is a liquidation plan. This involves an individual or business liquidating all their assets to pay off as much debt as possible. There is no established payment plan. Eligibility for Chapter 7 depends on your income and available assets. There are also some assets that may be exempt from Chapter 7. Your bankruptcy attorney may be able to negotiate you retaining certain assets as long as you continue making timely payments after the initial liquidation.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is similar to Chapter 11 in terms of there being a payment plan. However, Chapter 13 is typically reserved for those with a stable income to make some payments on their debts but not enough to pay the debts under the initially proposed structure. Your bankruptcy lawyer can help you craft and submit a repayment plan to the court for approval by the appointed trustee. The trustee is in charge of making the payments under the plan, meaning the debtor pays back the trustee directly.
Does Bankruptcy Affect Your Credit?
Yes. Any type of bankruptcy will affect your credit and show up as a negative item on your report. Bankruptcy can stay on your credit report for as long as 10 years. In some cases, bankruptcy won’t drive your credit score down much further than it already is from all the missed payments and being sent to collections. Once the bankruptcy is finalized, you may even see your score start to increase as you are able to make payments on time again.
Securing the Services of a Bankruptcy Lawyer
Step One: Contact a Bankruptcy Law Firm
Contact a bankruptcy attorney to schedule a consultation. You can discuss your financials and current situation. From there, the attorney should be able to inform you of what options are available.
Step Two: Determine Which Type of Bankruptcy
Once you turn over all your financials and your bankruptcy lawyer is up to speed, they will determine which chapter to file and make the official filing with the court.
Step Three: Submitting Paperwork
Turning over all your necessary financials will make the paperwork go faster and get you out from under your debts. Your attorney should handle all the paperwork for you in terms of preparation, completion, and filing.
Step Four: Come Up with Repayment Plan
Your bankruptcy attorney will use their experience to create a repayment schedule that will appease your creditors. Reminder - the trustee must approve the plan.
Step Five: Finalize Proceedings and Move On
Once the payment plan has been approved and all parties are satisfied, you can proceed with living your life without debt and start making timely payments again. Bankruptcy can provide a clean slate for borrowers, but you should be careful not to fall right back into the same situation.
Contact Us for Legal Assistance With Bankruptcy
We are here to help you navigate the complexities of bankruptcy. Contact our offices to discuss your situation and schedule a consultation to explore your situation in greater detail. You can ask questions about the process and your bankruptcy lawyer can get a sense of how serious your situation is. Contact us today to get started!