Bankruptcy and financial troubles are not something that anyone wants to deal with, sadly, for many, they are a reality. Bankruptcy does not have to be difficult and having some information about the process can demystify it. For those that are looking for a bankruptcy attorney or bankruptcy help, Jerry E. Smith Attorney & CPA can help.
What is Bankruptcy?
Before you decide that you might want to file for bankruptcy it is helpful to find out a bit about what it is. Bankruptcy is the dismissal or discharge of debts that are being held against the debtor. Not all debts can be discharged and not all debts are eligible for bankruptcy. You cannot bankrupt on tax debt, student loans and some kinds of other debt.
Bankruptcy is a binding legal proceeding, and it does have to be overseen by an attorney. It is a necessary process that many people benefit from greatly. With large debts discharged it does allow people to start over, to have a better outlook on life, and to get back on track financially. There are a ton of different types of bankruptcy that fit different needs and different lifestyles.
You can file for individual bankruptcy; you can file for business bankruptcy, and you can file for bankruptcy to discharge debt that you hold with another person. It is important to take the time to find out what type of bankruptcy is going to work best for you and for your individual circumstances.
What is the Bankruptcy Process?
The first step is meeting with a lawyer or with a bankruptcy counselor to start the process. You will discuss what types of bankruptcy there are, what is going to suit your needs best, and then start to fill out necessary paperwork. You will need to provide bank statements that show how much money you have and even pay stubs to show what your income is.
You will also need to fill out necessary paperwork that helps to provide the information that is going to be used in your bankruptcy. This first part of the process is going to be determining if you are eligible to actually file if you qualify and if you are going to be able to discharge your debt. You can be denied filing if you make too much money, or you have too much money in your bank account and you can feasibly pay the debts back.
The next step is going to be going through the counseling that you are required to take. This includes things like asking how much money you make, how much your bills and monthly payments are, how much you own and any potential assets that you have as well. You also need to go through budgeting counseling that is part of the class that you will take.
You then need to meet with your attorney to outline all the debts that you have, to outline what debts you are seeking to have discharged and to find out what debts are going to be upheld. You can keep debts like your car or your home if you want to continue paying on them after the bankruptcy and keep those loans in place.
Your attorney is going to work with you to get the most comprehensive list possible and to make sure that you are listing everything that can be discharged and everything that can be gotten rid of. They will also get the contact information for your creditors so that they can be contacted that you are filing bankruptcy. There are a ton of different types of bankruptcy that fit different needs and different lifestyles.
You will then go to court for your date, and this is the chance that the creditors can come and refuse to accept the bankruptcy and demand that you pay the debt in full at that time. In most cases a creditor is not going to come to your hearing, and they are going to allow you to discharge your debt.
Do You need an Attorney?
It is always a good idea to get an attorney if you are going to file for bankruptcy. Though you can fill out the paperwork yourself, you cannot file yourself as you do need an attorney to file for you. It is always best to get an attorney as they are going to be able to help walk you through the process, they are going to be able to help you make sure you have all the papers filled out correctly, and they are going to be able to help you get your bankruptcy filed and completed.
The help of an attorney is always going to make the process simpler, and it is going to help make dealing with bankruptcy a little bit easier. Bankruptcy is never simple, but with the right assistance it can be easier.
