What is the Procedure To File Bankruptcy Easily?

A debtor has to face a harrowing time while dealing with creditors when he or she is neck deep in debt. Thankfully, it is possible to opt for bankruptcy to get relieved from all types of debts and start with a clean slate. However, recent change in laws has made filing bankruptcy pretty tricky. Hence it is essential that one gets complete information about filling bankruptcy and its pros and cons. Following few lines will help you in understanding the process.

When bankruptcy is filed, an automatic stay is granted, which prevents the creditors from attempting to collect their money or seize the assets of the debtor. Partial or complete relief from debts might be granted by the court. Going for it can be considered in the following situations:

• You have been unemployed for long and can no longer collect unemployment benefits
• Your creditors are considering to sue you or have already done that
• You fear your home getting repossessed

Hire an experienced lawyer

Filing bankruptcy is not straightforward at all and it involves a great deal of complicated paperwork. If you fail to perform the correct paperwork, your case will be thrown out in a jiffy. You may want to hire an experienced lawyer to help you out in filing bankruptcy. Owing to the intricacies involved in the process, you need to opt for someone who has sufficient experience in helping individuals in filing the same in the past.

Check the fees

Your lawyer is going to charge some amount for his or her services, which can be either a flat fee or an amount depending upon the debt. Mostly, it is better to go for a lawyer who charges a flat fee. The lawyer’s fee needs to be paid well in advance as your lawyer cannot be your creditor under chapter 7 for bankruptcy. You may enter into an agreement with your lawyer and pay his or her legal fees at a later point of time.

Then there are the court filing fees, which are around $200 in most of the cases. This fee needs to be paid within a reasonable period of time after filing bankruptcy.

Types of bankruptcy

Chapter 7 bankruptcy: Chapter 7 bankruptcy is the most common type of bankruptcy. It involves complete cancelation of debts and the individual filing for Chapter 7 bankruptcy can keep the protected properties. However, the property which is not exempt from waiver needs to be handed to the creditors.

Chapter 13 bankruptcy: Chapter 7 bankruptcy involves setting up a repayment plan, which can be between three to five years. You will have to pay back your creditors complete due amount within this period. Most new individuals are forced to file for Chapter 13 bankruptcy.

You will undergo credit counseling, where you will be provided consumer credit counseling by a court appointed entity. Here, your eligibility for filing a particular type of bankruptcy will be checked. Your lawyer should assist you with every aspect of your training.

Complete the filing:

After the specifications of your filing have been agreed upon, your lawyer will file bankruptcy petition on your behalf. You will be asked to attend a meeting with your creditors, when they will ask questions and you will have to provide truthful answers to everyone’s queries.

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