A Bankruptcy Attorney Helps Clients File a Chapter 7

If you need to clear up debt, a bankruptcy attorney can help you to file a Chapter 7 bankruptcy where all or most of your debts are canceled. Working with an experienced lawyer will help to protect your rights as once you file, all of your financial affairs are in the hands of the court.  This includes your debts and your assets.

To start the process, you will need to fill out a variety of forms with your lawyer.  These documents will list out your personal information along with how much money you are currently making, your living expenses, property, debts, and any property that you want to have exempted from the filing.  This may include your primary residence if you want to continue living there and paying the mortgage.  You will also need to document your financial history for the past two years including if you purchased, sold, or gave away any property.  This is the courts way of understanding your case and ensuring that you aren’t trying to hide any additional property or assets.

Once the paperwork is filed, and the fees are paid, an automatic stay will be placed on your debts so that creditors cannot foreclosure or try to collect outside of the legal proceedings.  This is an excellent way for homeowners to avoid or postpone a foreclosure. It should also stop the harassing phone calls.  Your bankruptcy attorney will make sure of it.

The court will appoint a Bankruptcy Trustee to oversee the proceedings.  The trustee’s job is to make sure that your creditors receive as much money as possible through the liquidation of your assets.  They will review your paperwork to determine what, if any, non-exempt property is available for liquidation and if any recent financial transactions can be undone in order to free up additional cash.  Very often, there are no real assets to liquidate.  If there are, the trustee will order them to be sold and designate how the proceeds are to be distributed among creditors.

The trustee will also hold a creditors meeting where your creditors have the opportunity to speak, make a case, and request additional funds.  This is the time where you will be asked questions by the trustee and typically the only time you have to go to court.  It is important to have your bankruptcy attorney at this meeting in order to help you through the questioning process and challenge the creditors if necessary.

If you have secured debts, such as an auto loan, you will typically have to give the creditor the collateral the loan was secured with.  For example, you may need to return the vehicle.  If the property or asset is exempt then, you may be allowed to continue making the loan payments and keep the vehicle or home. If you don’t continue making the payments, the creditor can still come after you in the future.  As a bankruptcy attorney, we can explain the proceedings in detail during your initial consultation.  Call us today to schedule yours.

A Bankruptcy Lawyer Can Help You File a Chapter 13

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A Chapter 13 can provide debt relief, and a bankruptcy lawyer can help you through the process.  This is an excellent option for families seeking debt relief that also want to stay in their home.  With a Chapter 13 filing, people can stop foreclosure and make their delinquent payments over time. This allows families to stay in their home and start making mortgage payments on time again instead of being forced to make up the delinquency in one lump sum payment. 

In Chapter 13, a payment plan can be reached where, apart from your mortgage, one monthly payment is paid then distributed to your creditors according to the plan.  This lasts for a period of years, based on what you propose and what the judge approves.  Your creditors typically get paid a reduced amount than if you had the money to simply pay them off.  This makes it possible to get out of debt while still paying your creditors something.  Once the plan is approved, you are obligated to stick with it by making monthly payments on time.  Otherwise, your creditors can take you back to court. 

There are several rule and procedural issues that you need to know in order to get your Chapter 13 approved.  Hiring a skilled bankruptcy lawyer will help you through this process. For example, you must complete credit counseling within 180 days prior to obtaining your bankruptcy.  A copy of your course completion must be included with your initial filing in order for it to be processed. You must also file recent pay stubs or income documentation, a statement of your monthly net income and whether that is expected to go up or down, along with copies of tax returns.  At the time of the filing, a fee must also be paid to the court, typically $235 and $75 for processing. 

Your bankruptcy lawyer will also help you to fill out the forms and input the required information.  This includes:

1.    A list of who you owe money to and the type of loan that it is.  For example, a credit card with a balance of $35,000 owed to Bank of America.  Gather copies of your most recent statements to show your attorney so that the paperwork can be completed faster. 

2.    How much money you make, how you make it, and how often you are paid.

3.    A list of your assets and property. This would include your home, cars, boat, etc.

4.    All of your monthly living expenses.  This needs to be realistic, not conservative.  It should include everything that you pay in order to sustain including gas, food, and medication in addition to things like utility bills. 

Your income information will determine how much money you can use to pay towards debt payments on a monthly basis.  This is important because the judge needs to feel confident that you are acting in good faith and making the best effort to repay your debts.  Make sure that your income and expenses are represented accurately before filing your petition.  An experienced bankruptcy lawyer can help you to complete the forms and to get your bankruptcy approved.