If you're thinking about bankruptcy to possibly help eliminate your debt, or save your home from foreclosure--it all can begin with talking to a local bankruptcy lawyer.
The new bankruptcy laws require you to do new things when you file bankruptcy, and a bankruptcy lawyer can fill you in on how the bankruptcy process works.Connect with a local bankruptcy lawyer for free:
The bankruptcy filing process was made much more complicated with the implementation of the new bankruptcy law, and the need for a bankruptcy attorney cannot be overemphasized.
BAPCPA introduced several new features, including the means test for hopeful Chapter 7 petitioners, a mandatory credit counseling briefing prior to filing bankruptcy and a debtor education course before receiving a discharge for all bankruptcy filers.
In addition to explaining these new requirements that come with filing bankruptcy, a local bankruptcy lawyer can help you examine your current financial circumstances and evaluate whether filing Chapter 7 bankruptcy or Chapter 13 bankruptcy may allow you to attain a fresh financial start.
If you have decided to file bankruptcy-regardless of whether you're filing under Chapter 7 or Chapter 13 bankruptcy-you'll first need to obtain a credit counseling briefing from a certified credit counseling agency.
What is the credit counseling briefing? The credit counseling briefing is basically a primer on basic financial management, budget analysis and debt management strategies. In addition to hitting on these points, the credit counseling briefing addresses bankruptcy alternatives.
You should be aware that your bankruptcy petition may be dismissed if you fail to complete a certified credit counseling briefing.
If you have any questions about the credit counseling briefing, be sure to get in touch with your bankruptcy lawyer, who can provide even more insight and tips on satisfying this prerequisite.
People generally file for Chapter 7 bankruptcy to discharge credit card debts and other unsecured debts. So what happens when one files for bankruptcy under Chapter 7 of the U.S. Bankruptcy Code?
After obtaining your credit counseling certificate, you'll need to provide your bankruptcy lawyer with all information on your assets, income, expenses and debts. Your bankruptcy lawyer will use this information to prepare your Chapter 7 bankruptcy petition, which will be filed in a local bankruptcy court.
Upon your bankruptcy filing, the court will appoint a bankruptcy trustee who will enter an order for an automatic stay, which essentially stops all collection actions against you during your Chapter 7 bankruptcy case.
Six weeks after filing, you'll need to attend a meeting of creditors and testify to the accuracy of the information in your bankruptcy petition. Generally, Chapter 7 bankruptcy cases are very quick. Many people receive their discharge six months after filing Chapter 7 bankruptcy.
For more information about Chapter 7 of the U.S. Bankruptcy Code, check out the following resources:
People generally file for Chapter 13 bankruptcy to help stop foreclosure and/or vehicle repossession. Chapter 13 of the U.S. Bankruptcy Code often allows people to keep these cherished items via the establishment of a repayment plan of past debts.
Like Chapter 7, you will be required to obtain a certified credit counseling certificate prior to filing. Once you've obtained your credit counseling briefing, you will work with your bankruptcy lawyer to prepare your information in order to file Chapter 13 bankruptcy.
Also like a Chapter 7 bankruptcy case, you will need to attend a meeting of creditors after filing Chapter 13 bankruptcy. Throughout your Chapter 13 bankruptcy case, your bankruptcy lawyer will work with you in developing a 3-5 year repayment plan in which you can catch up on your past-due debts while still remaining current on your monthly payments.
For more information on what happens when filing bankruptcy under Chapter 13 of the U.S. Bankruptcy Code, speak with a local bankruptcy attorney and check out the following resources:
Under the new bankruptcy law, you must complete a debtor education course after bankruptcy but before being able to receive your discharge. This applies regardless of whether you're filing bankruptcy under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code.
As its name implies, the debtor education course serves as an educational tool for you to plan your financial future and learn some important lessons like establishing a healthy relationship with credit.
For more information on the debtor education course and its role in the bankruptcy filing process, speak to your bankruptcy lawyer.
Deciding whether or not to file for bankruptcy requires a lot of thought on your behalf; however, your thoughts may be skewed by worries about past-due bills and the unsettling threats of angry creditors. When it comes to making a decision it is important to have a bankruptcy lawyer on your side.
In addition to helping you learn more about the specific details that entail the process, a local bankruptcy lawyer can help you balance your emotional considerations by providing a calm, educated and rational perspective.
When your financial future may be on the line, you shouldn't go it alone. Get in touch with a local bankruptcy attorney by clicking below:
The above summary is not legal advice. Laws may have changed since our last update. For the latest information on bankruptcy laws, speak to a bankruptcy lawyer in your state.