How to file bankruptcy
A lot of people hate to admit they’re in the situation when filing bankruptcy is a must. The main reason of this action is that creditors are nice no more to you after your failure in paying off the debt. This works even for those who was the loyal debtor before.
Here are several advices of how to fix the whole situation with fewer nerves.
Will I lose everything after I file bankruptcy?
No. You might lose some real estate and other valuable property. Still your personal belongings are still with you. The furniture, clothes, tools of the trade and some accounts are counted as additional exemptions. You can use the attorney service in order to list your belongings in the
The life after bankruptcy
First of all you offer the number of documents to the court. If the filing process is admitted, the court sends the information about it to all your creditors. They will be present on the meeting, where your case will be discussed and the decision about your situation will be made.
Steps to file bankruptcy
1) Make sure the bankruptcy is the only way out of trouble
The mark about this action will remain in your credit history for 10 year that will surely affect your future credits. Still at this time there’s usually not much left to save there.
2) Consider, which bankruptcy type is right for you
There can be Chapter 7 (complete liquidation of bankruptcy), Chapter 11 (especially for businessmen) or Chapter 13 (the individual repayment plan). Usually people try to opt for Chapter 7, still if they’re capable of paying the debts within the limits of special plan; they will be forced to file by Chapter 13.
3) Look for the best way of filing
Some people are capable to file for bankruptcy without the lawyer, still the assistance is highly recommended.
4) Meet the lawyer
Be sure he answers all the questions you ask him. He will also assist you in figuring out the suitable chapter.
5) Define the costs
The fee you will pay for filing bankruptcy might differ. The bankruptcy stated by the court is free; still your own decision might appear somewhat costly. The usual fee is about 1700$.
6) What shall I do if I can’t pay for bankruptcy?
There are places where you can file for free. If you’re filing under the Chapter 7, the lawyer shall not be your creditor, thus you shall pay him in full before the case starts. If he lets you pay just the part of money, after the case is filed, the attorney shall waive it in order to represent you in the court. In case of Chapter 13 you can make payments through the repayment plan.
7) Talk with the creditors through your lawyer
After you’ve filed, the creditors have no right to speak to you, only to your lawyer. If the creditor tries to contact you, he might be as well punished.
8) Meet the creditor
On the “341 meeting” you will meet with your creditors in order to prove you’ve given the correct information about your financial situation. You might be asked questions there, take your time to answer them in full. The meeting time is usually 10 minutes.
9) Forget about credit cards
You shall not use them while fixing the bankruptcy case, since the debt on them will grow and the creditors will have the chance to make new steps in your case.
10) Define the assets to repay the debt in case of Chapter 7
Since some part of the debt shall be repaid, try to define which things you can use for this.
11) In 60 days after the meeting with creditors you can feel free
This term is what’s given your creditors for making any changes in the plan or declaring the propositions. If they didn’t ask you for additional papers or discussed your financial state, they will not do it after this term.