Bankruptcy can be confusing for many families who are struggling with debt and are striving to regain control over their financial life. So, here’s what you need to know about the bankruptcy process and how an experienced lawyer can assist you with navigating this complex, but ultimately beneficial, system.
1. Attend a Pre-Bankruptcy Credit Counseling Course
Before filing for bankruptcy, you must attend a pre-bankruptcy credit counseling course at an agency that has been approved by the bankruptcy court.
2. Begin Drafting Paperwork With a Bankruptcy Lawyer
The next step is to meet with an experienced bankruptcy lawyer to begin drafting your paperwork. Your attorney will tell you which documents you need to bring, including documentation of your income and debts.
3. Choosing What Type of Bankruptcy to File
Your income and debts determine which type of bankruptcy you will file. Although any individual can file for a Chapter 13 bankruptcy, Chapter 7 bankruptcy has limits to who can file it. Therefore, your lawyer will work with you to weigh the pros and cons of each type of bankruptcy to help you find the best fit for your financial situation.
4. Determining Exempt & Non Exempt Assets
Once your income and debts are verified, it’s time to go over your assets. Some assets are exempt from the bankruptcy process, while others may be liquidated to help pay a portion of your debt, depending on what type of bankruptcy you choose. Your lawyer can help you list your assets in a way that keeps as much property and assets exempt as possible.
5. Filing Your Paperwork With the Court
Your attorney will file your paperwork with the bankruptcy court.
6. Meet With a Trustee
You will meet with your bankruptcy trustee, who will make payments to your creditors on your behalf. These payments will be made either with the funds from the liquidation of your assets under a Chapter 7 bankruptcy or your monthly payment under a Chapter 13 bankruptcy.
7. Attend a Finance Management Seminar
Finally, you are required to attend a court-approved finance management class once your filing has been completed.
Help is available to you if you are struggling financially. Contact the Law Office of Howard Tagg today to learn more about the bankruptcy process and how filing bankruptcy may give you the opportunity to start over with a clean financial slate. Call now for a consultation at (903) 730-6366. We would be more than happy to assist you.