iling for bankruptcy can be a life-changing experience for anyone. Filing for bankruptcy does not necessarily mean you failed at something; it is just that the debts were just too much. Bankruptcy is a solution you can choose when other options fail. Although it is not always the best solution, but still it is a remedy that can help you salvage some property or assets you might have. The best way to go about in filing for bankruptcy is to seek legal counsel from a reputable law firm that will guide you through the whole process.
Steps in Filing for Bankruptcy
Make sure that there are no more alternatives available. You have to remember that when you file for bankruptcy, it will be reflected in your credit file for up to 10 years. Bankruptcy should be considered the last choice. When you have already decided to file for bankruptcy, the court will still give you time to think by asking you to attend consumer credit counseling.
The next step would be to consider which type of bankruptcy you would file. If you are an individual there are two kinds of bankruptcy that can be filed. There is the Chapter 7 and Chapter 13 bankruptcy. If you are an organization, partnership or corporation then you can file for Chapter 11. The most popular would be Chapter 7, this kind of bankruptcy would mean that all of your debts will be discharged by the court. For Chapter 13, your debts will be restructured and creditors will be paid with a maximum of 5 years allotted time. The Chapter 11 bankruptcy is similar to Chapter 13 but it is mostly used by businesses due to some complex matters.
The third step would be to choose if you will file by yourself or with an attorney. If it is just individual bankruptcy then the debtor can file it directly to court. But if it is a business entity, then a lawyer is needed. If you are not sure of what to do, then it is most advisable that you have a lawyer present to talk with so that you will be aware of the legal things that you need to do.
Then, you need to meet with the lawyer you have chosen. The lawyer will help you determine how you will go about filing the bankruptcy case.
You also have to be aware how much your lawyer will charge you for the bankruptcy case. It will depend on the arrangement you have with your lawyer. Although some lawyers can waive the fee it really shows that you are unable to pay.
Give the list of your creditors to your lawyer. They will be the one representing you. All matter that deals with your creditors will now be directly in your lawyers hands. There will be no more creditors that should be contacting you by this time. It is the lawyers who will talk in your behalf with regards to your bankruptcy case.
Once the lawyers submitted your petition, you will wait for the notice of creditors? meeting. This will ensure that you have given truthful answers to your bankruptcy case. If both parties are in agreement, the court will give you notice on how your bankruptcy case will be settled.
Alison writes about medical bankruptcy at Medical Bankruptcy Tips, please click here to visit her blog.
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