It is that we must take bankruptcy seriously. If you miss a part of the process or do not submit a specific document, bankruptcy may be rejected. You need to confirm that you understand everything about bankruptcy filing. It is a frequently asked question that will help you understand the process details.
What is the first step?
The first thing you should do when you decide to file a bankruptcy is to decide what type you submit. The two basic choices are Chapter 7 or Chapter 13.
The difference between the two is the method of liquidating the debt. In chapter 7, debt is amortized, and in chapter 13, the court will set up a repayment plan and repay the obligation.
In Chapter 7, assets you are not exempt will be sold to repay your obligation. In chapter 13, it is highly likely to hold assets. This is important if there are excessive assets that will not be lost at bankruptcy filing.
Should I hire a lawyer?
It is really your own decision. Perhaps you can do it alone if you feel that you know all obligations and you submit the document correctly. However, the lawyer will help you through the process, answer questions to you and represent the court against the creditors.
If there are risky assets or various creditors, a lawyer can hire a lawyer. Lawyers ensure that all liabilities are guaranteed and as much assets as possible are protected.
how long will it take?
The length of the process can vary greatly. There are many factors that affect how long it will take, so there is no general timeline.
Since you need to wait for the class to begin, you must attend credit counseling that may slow down the process. You also have to go to the court, it depends on the documents of the court and its busyness. You may also have to wait for an obligee seeking a little more time.
Overall, within the first year after submission most of the time, you should have completed the process.
What kind of documents are required?
You will need all information about your debt and finances. Again:
- Name of the creditor
- Creditor's address
- Debt amount
- Income
- Tax of the previous year
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