Bankruptcy protection is a common legal process that serves as an alternative to traditional bankruptcy measures. In the United States, a business or individual can file for bankruptcy protection when it becomes impossible to make payments to creditors.
Sometimes an individual or business enters bankruptcy protection to avoid losing a large asset, such as a home. Through a protection program, the debts are restructured via Chapter 13 bankruptcy. When an individual is in debt and unable to repay, even after a restructuring of the debt, he or she will most likely need to file for Chapter 7 protection.
Free Bankruptcy, Find A Bankruptcy Attorney, New Jersey Bankruptcy Lawyer,
Before entering bankruptcy protection, compile a list of assets and debts. As a general rule of thumb, most student loans, court fines, alimony payments, and taxes cannot be restructured. Regardless, make a complete and accurate list.
Next, it is always a good idea to hire an attorney when seeking bankruptcy protection. This is especially true when the future of a house hangs in the balance. When visiting an attorney for the first time, he or she will need the list of assets and debts, personal banking account statements, and pay stubs or tax forms as proof of income. The same documents are required if you choose to file for protection without the assistance of a lawyer.
In 2005, the federal government passed legislation that requires everyone who files for bankruptcy to attend a credit counseling class. These classes are hosted by registered agencies around the nation and can provide much needed insight when opting for Chapter 13 protection.
When it is time to file the bankruptcy paperwork with the court, the attorney or paralegal can handle this aspect of the filing. However, the filer will need to sign several forms and confirm the information being provided to the court. If you decide to file for bankruptcy protection on your own, take the time to study the topic. There are several books and resources designed to help people who choose this method.
Once the paperwork is filed, a federal court meeting will be set. The bankruptcy trustee and creditors are invited to attend the meeting as is the attorney. The filer usually attends, but very little action is required from this person. If the paperwork is in working order, there is typically only one meeting. However, it may be necessary to return at a later date.
Individuals who file for Chapter 13 protection are then subject to repaying the debt as determined by the court. A payment plan is established and usually takes between two and three years to complete. The exception to this rule is mortgage payments. Payments are made to the trustee and must be done so on time to avoid further action by the court.
Once a person has filed for bankruptcy protection, it stays on his or her credit record for several years. Chapter 13 filers can expect the bankruptcy filing to remain in their credit history for 7 years. Chapter 7 filers will see their bankruptcy filing on their credit report for 10 years.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Counseling
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment