During bankruptcy, a creditor has the opportunity to submit a "proof of claim" to the bankruptcy court, which is a legal document that tells the court the amount of money the creditor is owed.
While this is one of the few forms creditors must file, bankruptcy filers have to deal with a multitude of technical paperwork. Many filers find this work overwhelming, and seek legal aid to help them through the process.
If you'd like more information on how to file personal bankruptcy, fill out the case review form below to arrange a free, no-obligation consultation with a personal bankruptcy attorney.
When a creditor files a proof of claim, they tell the bankruptcy court the amount they wish to gain from the proceedings. Of course, this is not always the amount they'll receive. In fact, bankruptcy can often free you from certain debts.
Under Chapter 7 bankruptcy, you may be able to shed the following types of debt:
These are all types of debt that may be wiped away, even if a creditor has filed a proof of claim. Chapter 7 bankruptcy is designed for people with limited assets, or who have recently lost their job or suffered from a medical emergency.
Another form of bankruptcy is Chapter 13, which is designed for people who have relatively stable incomes. Chapter 13 bankruptcy allows filers to create a new debt repayment plan that offers a more realistic chance to pay off your debts.
In addition, Chapter 13 may be able to help a bankruptcy filer:
You aren't sure which chapter is right for you, a bankruptcy attorney can help you weigh your options and determine if either is the best fit in your situation.
A frequently asked question by people in debt is: how do I go about filing for bankruptcy? The truth is that bankruptcy laws vary by state, so it's best to contact a local bankruptcy attorney to learn the rules of your particular region.
Of course, there are some features of bankruptcy that are universal. First, an individual must consider whether they want to file Chapter 7 or Chapter 13 bankruptcy. Both forms offer aid to people in unique circumstances.
Again, a personal bankruptcy attorney can help fill you in on the nuances of filing for bankruptcy. By connecting with a local lawyer, you may also learn more information on the rights of creditors during the bankruptcy, including their right to file a proof of claim.
Remember, though, that just because a creditor files a proof of claim, they do not necessarily have an irrefutable claim to your hard-earned money.
To get answers about your situation and whether you'll be able to find relief from creditors through U.S. bankruptcy laws, simply fill out the form below to arrange a free, no-obligation with an attorney near you.