There are a few important things to know before filing for bankruptcy. The worst thing about bankruptcy is the events that lead up to considering such a decision. You might be stressed, worrying about bills and your well-being. You might be getting highly unpleasant calls from collectors, and assuming you answer them, they’re surprisingly good at making you feel guilty. They practice their craft to make you feel this way, and to guilt you into paying them before you feed your family.
It’s the business model they follow to make their living by collecting money from you. It’s no wonder you decided to make a life-changing move like filing for bankruptcy. So what do you need to do to file bankruptcies? Many people do not understand that and some assume they can handle everything on their own.
Please, don’t be the person who thinks they can do what an experienced attorney does for a living. The first step in the process is finding a bankruptcy attorney that can help you. Bankruptcy attorneys hear stories like yours daily. They know and understand the situation, and they can advise you on the next steps to take for the best possible resolution for you.
Before you file bankruptcy, arm yourself with as much knowledge as possible to understand what you’re facing. The process may seem daunting, but the reality is your attorney does most of the work. Depending on the chapter of bankruptcy you and your attorney decide on for your situation, your attorney guides the process so you can find financial freedom.
The Bankruptcy Process Simplified
Bankruptcy for individuals differs from that of business bankruptcy, but the result is similar. It’s a fresh start. But make sure you are familiar with the most important things to know before filing for bankruptcy.
A Chapter 13 bankruptcy, or wage-earners plan, allows you to pay your debts in installments at a much reduced rate for three to five years under normal circumstances. The chapter allows you to keep most of your possessions such as your car and your home. However, to keep either one, you must show the court you can afford the payment plan set up between you and your attorney.
The paperwork involved in filing for bankruptcy overwhelms some people. The bankruptcy law requires it, and it’s the only way to reach the end of the process. Record keeping plays a vital role in all dealings with the court, so it’s in your interest to complete every step in the order given without missing details. Successful completion of your case relies heavily on your honesty.
First Meeting of Creditors
Soon after filing for bankruptcy, you will attend the first meeting of creditors mandated as part of your bankruptcy filing. In the meeting, creditors, if they attend, have the chance to question you, but the presiding bankruptcy trustee will keep the questioning and the meeting civil.
Once again, your honesty wins over the judge and the creditors. Just explain your answers honestly and completely. Your attorney explains how to file for bankruptcy beforehand so your understanding of the process doesn’t scare you and prevent you from reaching your goal.
Your Financial Life Becomes an Open Book
Aside from the normal feelings of embarrassment about bankruptcy, your finances may become open to the court and there could be direct questions about them. The meeting takes place in a courtroom open to the public, and it can leave you feeling apprehensive about moving forward. Remember your attorney guides you through the process and speaks for you in most cases. This is one of the most important things to know before filing for bankruptcy.