Information On Bankruptcy Filing Essential For Preparing Petition
By filing bankruptcy a debtor could secure debt relief. But information bankruptcy filing could be vital before debtors take such a drastic step. While it could be true that if you file for bankruptcy, you could reduce your financial stress, it could be equally true that your credit score could get affected for at least seven long years. And during this time, you may not be able to draw any further credits. Therefore, you need to consider filing bankruptcy only after all other debt reduction alternatives have failed. Nevertheless, it could be important for you to take a few aspects into consideration prior to arriving at a proper decision. To that effect, you should explore various bankruptcy options and find out what type of bankruptcy you are eligible for prior to knowing how to file for bankruptcy.
Typically, you could file a personal bankruptcy under chapter 7 or 13 of the United States bankruptcy code. Here is some crucial information regarding the same which readers might find useful.
1. Chapter 7 bankruptcy
A chapter 7 bankruptcy could be the most apt way to restart your financial life if you do not own any properties or assets. It is also known as liquidation bankruptcy as all the non-exempt assets owned by a debtor would get liquidated for repaying the creditors. But there could be few exemptions and therefore, you need to seek help from a lawyer to get chapter 7 bankruptcy information.
2. Chapter 13 bankruptcy
You could file a bankruptcy under chapter 13 if you intend to repay a portion of your debts to your creditors. In a typical chapter 13 process, debtors are allowed to retain all their assets in exchange for a favorable monthly repayment plan which is approved by the bankruptcy court. But to determine your eligibility your monthly or annual income could play a vital role.
Once you have decided as to which of the above options is best for you, you can then proceed to know is how to file for bankruptcy. It is for the benefit of readers that the basic steps involved in bankruptcy filing are being provided as follows.
1. Consolidate all your outstanding credit dues
2. Contact an attorney for preparing your petition
3. Know the cost to file for bankruptcy in court
4. Prepare necessary paperwork for filing bankruptcy
5. If it is chapter 13, attend the 341 meeting with creditors
6. Get an official discharge with an order from the bankruptcy court.
From the aforesaid it is quite clear the role of bankruptcy lawyers would assume significance during the entire process of bankruptcy filing. Therefore, when you are out to file for bankruptcy, you need to choose a competent lawyer who is thoroughly well versed with the eligibility guidelines and process requirements for chapter 7 or even chapter 13.
To get guaranteed debt relief through your bankruptcy filing, you need to avail proper information filing bankruptcy. And for that, it could be important for you to find competent bankruptcy lawyers who are well versed with the eligibility guidelines as well as process requirements that apply to chapter 7 or chapter 13 personal bankruptcies.
The author Billy wordon is one of the best bankruptcy lawyers in the United States. For the past twenty years he has handled hundreds of personal bankruptcy cases. From his experience he seems to be conveying that without proper information on chapter 7 bankruptcy filing, it may not be easy to secure a guaranteed debt relief under various bankruptcy options.
Processing your request, Please wait....
