An Introductory Lesson on How to File Bankruptcy Do It Right
If you are one of the millions people who feel suffocated by the mountain of debt that has accumulated over the years then you might want to strongly consider filing for bankruptcy. Despite the negative connotations associated with the word “bankruptcy,” it is important to understand that it is really a positive service offered by our federal government.
Getting Started
Bankruptcy is a legal process and thus requires the utmost respect and attention on your part. Because its outcome will determine the finances of you and your loved ones, you will want to do everything in your power to make sure the legal process goes off without a hitch. The best way to do this is to consult a licensed bankruptcy attorney. Talk to several before landing on one that you trust so you can be sure that you’re getting the most accurate advice out there.
Once you’ve consulted an expert and are confident that filing bankruptcy is right for you then it is time to start the legal process. You can do this by filing the proper paperwork with the bankruptcy court. Your lawyer should be there by your side throughout this process to make sure you’re not only filing the paperwork correctly but that you’re also eligible for the type of bankruptcy you’re filing for whether it is Chapter 7 or Chapter 13. Chapter 7, or “liquidation” is the most common type of bankruptcy and entails a court appointed trustee liquidating your assets and dividing them amongst your creditors. Chapter 13 permits the debtor to pay off his or her debts, in part or in full, over the course of no more than five years.
A trustee will be appointed to your case and their job will be to make sure all the information you’ve provided is correct. The trustee will also oversee the liquidation and division of your assets should you file for Chapter 7 bankruptcy. You will want to notify all your creditors that you are in the process of filing bankruptcy because most will halt payment inquiries.
Make Your Bankruptcy Filing a Successful One
As noted above, filing for bankruptcy can be a good thing but the situation that it stems from is often unfortunate since you wouldn’t be filing it in the first place if you didn’t have insurmountable debts. However, everyone deserves a second chance and if you do need a fresh start thanks to filing for bankruptcy then make sure you do it right the first time. Contact a bankruptcy attorney today to get on the right track to a clean slate.
