How bankruptcy works
Bankruptcy is an option that can help you relieve your debts. You may find yourself in a position where you can no longer pay the debt due to a change in your life, such as divorce, job loss, medical costs, and other reasons. don’t wait until the last minute to apply; many times, people try to hold on and their financial situation becomes more difficult. Once you have decided that you can no longer meet your obligations, it is time to visit a bankruptcy attorney and discuss your options.
You are not required to hire a bankruptcy attorney, but it can be a confusing and time-consuming process, and it is best to have someone experienced and knowledgeable on your side. When you visit your attorney, there are several things you will discuss, including your current situation, your creditors, whether filing Chapter 7, 11, or 13 is best for your situation, and more. Your attorney will spend time answering your questions and there will be paperwork for you to complete. Your first visit is usually for exploratory purposes, and after your bankruptcy attorney has all the facts, time may be needed to assess the best course of action.
Once you have gathered all of your information and decided which type of filing best suits your situation, your attorney will begin working on your Petition and Addendums, which is paperwork that summarizes your financial situation and creditor information. This paperwork is very important, and mistakes can cause you more difficulty. Your bankruptcy attorney will also make sure the Petition and Schedules are accompanied by supporting documentation.
After completing all the paperwork, your bankruptcy attorney will file a bankruptcy case with the court. You will be scheduled for a hearing where a bankruptcy officer will review all material and make a decision regarding your discharge unless they determine that more information is needed or that you do not qualify. Of course, having an experienced bankruptcy attorney increases the chances of a favorable outcome, since they have already evaluated your case and are familiar with the documentation that will be required.
Filing for bankruptcy can put you in a better position to manage your finances and regain some stability in a life that may have been out of control. If you think filing bankruptcy may help your situation, schedule an appointment with an experienced bankruptcy attorney and discuss your options.