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.
