Sometimes there is no choice but to declare bankruptcy. However, it is not an easy process to have debts discharged just because a request is made to the courts. There are several things that must happen before a bankruptcy discharge is awarded to anyone. An attorney is necessary when filing for bankruptcy. Contact john hendersonl law office for assistance in moving smoothly through the entire process.
On the first visit with an attorney, several things will be asked from the client. The attorney will start a file recording the debts owed to each creditor. Secondly, a request for assets held by the client as well as prior year’s taxes and copies of pay stubs. The type of bankruptcy will be determined after a lawyer examines all of the information given by the client and determine the best type for the client to file.
A Bankruptcy Attorney will decide if a chapter 7 or a chapter 13 bankruptcy is appropriate under the given circumstances. A chapter 7 asks the courts for relief from all debt. In this type, there are no repayment structures at all. In most cases, the debtor can keep certain assets such as a home, car and other exempted assets. Any non-exempt assets are to be sold to pay the creditors. In a chapter 7, the debtor is released from owing the creditors any other payments. The debtor is given a clean slate except. In the future the debtor may have trouble getting any type of credit for the next seven to ten years since the bankruptcy will appear on the credit record. A chapter 13 involves a repayment plan in which the debtor will pay a small amount to the creditors for a specified amount of time.
Before the bankruptcy can be approved by the courts, the debtor must attend credit counseling sessions. This must be documented with the courts. There is also a trustee’s meeting in which the creditors can question the debtor about the debt that’s owed. The debtor must appear at this meeting. In most cases, the creditors don’t show up for this. The trustee also may ask questions of the debtor. If everything seems to be in order the trustee will alert the attorney that the bankruptcy will be filed. If approved by the courts, then a judgment of bankruptcy will be complete and the debtor will be informed within a few months.