Filing Bankruptcy - The Process
Filing bankruptcy is a major step. It is smart to have a qualified attorney on your side to guide you through the process and help you understand its complexities. It is a legal process that allows you to seek protection from your creditors in United States Bankruptcy Court.
The process for filing bankruptcy begins with evaluating your financial situation and determining if you are eligible to file Chapter 7 bankruptcy. To be eligible, your income must be less than the median income for people in your area. If it is more than the median income, if your monthly income, after expenses, is equal to 25 percent of your non-priority unsecured debt you will still be eligible for Chapter 7 bankruptcy.
In all other cases, you would have to file a Chapter 13 bankruptcy. Under Chapter 13, your debt is reorganized into a no- or low-interest payment plan that should get you back on firm financial footing in 3 to 5 years. You will be allowed to keep most of your property as long as you can continue to make the monthly payments on your payment plan and any debt owed on the property you keep.
Bankruptcy is a tool that can be used to discharge or restructure your debt. It is not meant to punish you for failure, and many consumers who file bankruptcy will be able to keep all of their possessions. Bankruptcy can stop foreclosure on your home, law suits, judgments and harassing creditor collection calls.
Getting the advice of a good lawyer is essential to getting through a bankruptcy with less frustration and stress. Our attorneys provide a free initial consultation to evaluate your case and set a plan to fit your needs.
Share this article with a friend