The process to file bankruptcy
Your bankruptcy lawyer will educate you about the different categories in which to file bankruptcy, its primary objectives, application and function to help people get out of debt not by escaping it but by finding efficient plans to reorganize it.
As soon as you have decided to file bankruptcy, you are heading your way towards the freedom to be free from debts. You need to find out how long the process will be, how long will the filing be? Who must be informed about the filing? The process of filing a bankruptcy? The process of filing will mandate you to finish a petition and then disclose all of your debts as well as your assets to the court. Before that, you need to finish a pre-filing credit counseling course and be able to get a certificate of completion. You need to finish the course before you can file for the petition.
After filing the petition, you need to attend a meeting with the creditors, this is required by the law. The meeting will happen in a place before the court appointed trustees. For the Chapter 7 liquidation of assets, the process may last up to 6 months with a meeting of the creditor before the trustees. The debtors will not see the judge, unless there is a need for reaffirmation hearing. For Chapter 13 individual debt adjustment case wherein the debtor must pay a part of the debts over time, needs a lot of time and money for the fees. The process may last for 3-5 years, depending on the household income of the debtor and his ability to repay the debts. The process to file bankruptcy may be hard, but if there are lawyers to help you out, things will be lighter and better as well.
Chapter 7 bankruptcy process
- You need to go through credit counselling first with an approved credit counselling agency. It may be a group or a person. The court will not mind at all for as long as this step is fulfilled.
- You must file a petition and the related documents with the bankruptcy court district where you live with the fees for filing. With the permission of the court, the filing fee may be made in installment method or it may also be waived in certain instances; but this is just rare.
- The trustee of the Chapter 7 bankruptcy is called the administrator in certain states. He/she is appointed by the court. He/she will be the one to review all of the documents which you have filed and may also ask you to submit additional information if needed.
- The Chapter 7 bankruptcy trustee will be the one to conduct the meeting of creditors. The meeting will be placed under oath and you need to ask some questions about the assets and financial matters too.
- If you are interested to reaffirm a particular debt and you need to qualify, you can also file a motion to reaffirm the debt. If you want to prevent particular liens on property or particular judgement liens, you can also file a motion to prevent the liens with the bankruptcy court.
The presence of too many debts can be overwhelming to some people that some find it hard to recover both financially and emotionally. Other people can even get depression or other illness associated to stress that results from the pressure being put on their shoulders to settle all bills and loans. But a debtor or a business can find hope and have a fresh start by asking for extension of the deadline of payments or even reducing the amount of debts to be paid. It is possible by going through the process for filing bankruptcy. The Chapter 7 bankruptcy process will be easier and simpler if handled by a well versed lawyer in bankruptcy.
Chapter 11 bankruptcy process
The laws of bankruptcy are defined in different categories. Technically, these are called chapters. Debtors may file bankruptcy under five different chapters. Three of these are designed for individual debtors. But the government also takes appropriate actions to control the abuse of this law to protect the other party as well, which is why strict guidelines should be followed. New laws can make it difficult for a debtor to file bankruptcy or complicate the requirements needed to be accomplished. To solve this problem, he can look for a competent lawyer whose expertise is in bankruptcy laws to consult him of all the necessary forms he needs to file and which category should he be under.
The Chapter 11 bankruptcy process is usually used by business owners. This is one of the best ways to restructure their debts without losing the business. To go through this, the debtor must file a petition with the list of all the assets and the liabilities at the same time. They must be written in a detailed manner. Some of the assets of the company will be sold to repay the creditors. The debtor must also provide a plan and make it ratified by the creditors. How long does the bankruptcy process take? That depends on the chapter you have filed for. But the Chapter 11 is quite lengthy, since it is about a company and there are lots of aspects to deal with like the real estate properties and others.
Chapter 13 bankruptcy process
A person who wants to be given second chances to manage his debts and start anew may find the process of bankruptcy even difficult to handle. But with the help of a bankruptcy attorney, he can have a dependable partner who can advise him with the best move to make. Bankruptcy attorneys can help you in handling the overall aspects of bankruptcy law and offer lawful techniques to pay all debts by liquidating legal assets and distribute them fairly among creditors. This way, you can resolve your credit problems in the most efficient way approved by the court.
The Chapter 13 bankruptcy process is about the manner a person can pick the process of reorganization that leads from the federal bankruptcy court. The code says that the primary goal of the chapter 13 bankruptcy process is to enable the debtors who have income to agree with what the court has to say about the repayment terms. This goes to show that a person can only file the Chapter 13 bankruptcy process if his finances can handle the terms governed by the law, otherwise, Chapter 7 will be more advantageous.
How long does the bankruptcy process take?
The bankruptcy process may take place for some time, some may be around 3-5 years, while some may last longer. Your bankruptcy attorney will educate you about the different categories in which to file bankruptcy, its primary objectives, application and function to help people get out of debt not by escaping it but by finding efficient plans to reorganize it. He can discuss what bills can be discharged, how long the payment schedule is extended, what properties can be kept or what are the other loans to be paid. Every state has its own list of bankruptcy attorneys to serve people who need their practice. If you are from Utah, there is a bankruptcy attorney to help you file it under any chapter. If you feel you need to consult one now because you can no longer handle your debts, and you need real sound advice to help you face this crisis, then contact a reputable one for the best advice.
My name is Craig R. Chlarson. Whether you are seeking to eliminate your debt, typically through a chapter 7 filing, or whether you are seeking to reorganize your debt, typically through a chapter 13 filing, or even if you have basic bankruptcy questions, call me today. I can help you.
To schedule an appointment, call (435) 901-3449
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