Bankruptcy How To File – Our Outline

Apr 27th, 2014 | By | Category: Info

Recession has left us in a situation where ‘debt has become a portion of who we ‘re. ‘ Law has placed bankruptcy for your protection, but protection only when you’ve got no other resort. As many among us, who’re made in the quicksand of debts, would be contemplating on filing bankruptcy, with the prime question in mind on ‘how do I file for bankruptcy‘ and how does bankruptcy work. Hence this article would cater to all those doubts and questions arising in your minds regarding bankruptcy filings.

Before filing on bankruptcy ensure that you’ve checked on all the alternatives you otherwise have. This is because bankruptcy seals your credit file for the following ten years. I do understand that your credit already might be in a poor shape, reason which you’re looking to file for it. Bankruptcy does give you a fresh start. But as per the BAPCPA rules, one needs to get a credit counseling from an entity approved by the US Trustee before filing for the same. This counseling somehow tries to help the filer with some alternative which mightn’t be found or understood.

What does this have to do with bankruptcy how to file?

Next check on under which chapter you would file the same, chapter 7 or 13. The former is the straight or liquidation bankruptcy whereas the latter is the repayment plan type. Chapter 7 filing is tough, as you need to qualify the ‘means test’. This makes many to opt for chapter 13.

Once you have made up your mind on filing for bankruptcy, research on the different options available. Some prefer to go about it without the help of a lawyer. However, it’s highly recommended to take lawyers help when filing for the same. In most cases, when you select a big house, they would let a paralegal handle your cases than a lawyer. Always try to get a direct touch with the attorney. The lawyer would decide the best fit chapter for you to file for.

Check out the bankruptcy costing, including other adminisntrative costs, the entire filing fee, and the lawyer’s fee. In cases of chapter 7, you need to give the lawyers fee in full before the communication is filed. In cases when you still owe a portion of the fee, it becomes uncollectible and the lawyer has to waive it off or can stop representing you, whereas in chapter 13, as per the payments agreed upon, can be made through or after the filing also.

Once you file for bankruptcy, not one of the creditors can call on you and harass you. If they do, just refer them to the lawyer handling your case.

Once your lawyer submits the petition, you would get a mail notification with the day on which you would need to carry out your creditors. This meeting enables the trustee to confirm your debt standings. This meeting would hardly be of 15 minutes.

In case you have filed for chapter 7, the trustee would decide on whether or not your assets need to be liquidated to reimburse the creditor. In some cases your assets are exempted from liquidation, wherein a ‘no distribution’ report is generated. The non exempt assets would be sold to repay your creditors.

Bankruptcy laws help those who can no longer pay their creditors get a new start through liquidating assets to settle their debts or by making a repayment plan. Bankruptcy laws also guard troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation.

Normally the sixtieth day from your meeting the creditors marks the time limit for the latter to file lawsuits to object to the discharge of a specific debt. In absence of this, you would receive a ‘discharge’ notification in cases when you file for chapter 7. But if you have filed for chapter 13, you would receive the discharge only 30-60 days after your final payment is made.

QUESTION: What happens when you file for bankruptcy?
I just heard today that my parents might file for bankruptcy and I'm very worried. I heard that there are different "chapters" for when you file for bankruptcy My parents tell me not to worry about it and its not that bad, but I can stop feeling concerned. Can someone please help explain to me what the effects of filing for bankruptcy are and what are these "chapters" Thank you.

  • After one files bankruptcy, an automatic stay is issued that prevents those to whom the debt is owed from further collection activities. About a month after you file bankruptcy, a meeting with all of your creditors will take place to discuss your bankruptcy. This doesn't mean that all of your creditors will attend. Perhaps none of them will attend; however, the bankruptcy trustee will definitely attend. If a creditor does attend, it is likely for the purpose of contesting your exemptions. The meeting generally lasts for an hour or less. At this meeting, the bankruptcy trustee will go over your bankruptcy papers with you. The trustee might question certain items you've listed. In any event, he or she will look for discrepancies and inaccuracies in the amounts you've put down on your bankruptcy papers. All of the property that you have not claimed to be exempt is given to the bankruptcy trustee at this meeting for liquidation. The bankruptcy trustee will then begin the process of selling off your assets to pay your creditors. You will likely be informed at this meeting that you are prohibited from selling, giving away or throwing away any of your property without the permission of the bankruptcy court. The time between filing for bankruptcy and obtaining a discharge usually lasts anywhere from four to six months. Until you obtain a discharge, you have the right to back out of the bankruptcy, meaning you can request that the bankruptcy be dismissed.

  • you are broke

  • your fuc#ed

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