Filing for Bankruptcy
Bankruptcy Attorneys
If you are an individual or unincorporated sole proprietor, the law does not require that you have an attorney. But completing all the documents can be difficult. An attorney can advise you on what type of bankruptcy to file, make sure your documents are filed at the right time, and assist you in making sure you've included important debts and facts in the paperwork.Decide which bankruptcy will best suit you
There are four main types of bankruptcies:-
Chapter 7
Under this form of bankruptcy, some of your assets are protected. (see exemptions below) The rest of your property may be taken by the court and converted to cash and divided among your creditors. Your bankruptcy is then discharged and most creditors can no longer attempt to collect money from you, even if your original loan has not been paid off.
Chapter 13
If you decide to file under Chapter 13, you will work out a repayment plan which the court must approve. You will be required to pay back some or all your creditors within three years, without giving up property. Sometimes the length of time is extended to five years if the judge sees fit.
Chapter 12
is a type of bankruptcy for family farmers
Chapter 11
is a complicated bankruptcy generally used by corporations.
Filing for Chapter 7 Bankruptcy:
Obtain the court approved forms you will need to file with the United States Bankruptcy Court. You will also be charged a fee. Under some circumstances, if you cannot afford to pay the fee in full at the time of filing, you can ask the court for permission to pay in installments after the petition has been filed.List:
Write a statement of:
The bankruptcy court will then set a date, time and place for a hearing that is called the Section 341 'meeting of creditors.' You must attend this meeting and answer questions under oath by the trustee and any creditors who appear. The questions are about your financial affairs, including your property, past earnings, and the schedules you have filed. Your case may be dismissed if you fail to attend this meeting as scheduled.
Meeting with your creditors
It is the duty of the trustee, as a representative of your creditors, to determine whether you have listed all your assets, and whether there is some reason why he or she should ask the bankruptcy judge to deny your discharge. It is also the trustee's duty to take possession and sell any of your non-exempt property, to examine claims creditors may file and determine whether they are proper, and to distribute any proceeds of that property among your creditors.
Exemptions
Property that may be exempt if the value of each is within certain limits, and you have taken proper steps to claim the exemption:If you have pledged property to a creditor to secure a debt, then you must usually either pay for the property or give it back to the creditor. This is true even if the property is exempt. You may have to attend another hearing after you receive your discharge if you have worked out a deal with a secured creditor to keep some property.
Discharge
If all of your assets are exempt, and no one objects to your discharge, you will receive your discharge from the debts about 90 days after the meeting of creditors. You will not be discharged from debts such as child support or student loans. You are required to do everything necessary to assist the trustee in collecting your nonexempt assets. You may have to make further court appearances at the trustee's request. If anyone objects to your discharge, or if a creditor objects to your discharge from any particular debt, you will have to appear in court to defend your position. In the majority of cases, these issues do not come up.If you've already filed for bankruptcy
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