1) Meeting an Attorney
The most important step before filing bankruptcy is meeting with the right attorney who will help you with all of your problems and will give you the right choices. You can also contact Recovery Law Group from Los Angeles & Dallas, TX for the Same. Contact – (888-297-6203).
2) Deciding of the Chapter to file in
Another important decision you need to make is deciding whether you need to file for chapter 7 or chapter 13. Both are good in their sense and have their advantages and disadvantages. Chapter 13 will give you a 3 to 5-year plan to pay off your creditors with monthly installments, while chapter 7 will liquidate some of your assets and pay off your creditors immediately.
3) Preparing a Petition
The petition is where you will have to disclose all of your debts, your assets, and your financial history. You cannot mention some details and hide some. Everything must be included. The petition is around 50 to 70 pages long. One most important thing to mention in your petition is your designation of exemptions. You need to be sure of what to exempt as the exempted properties will not be taken by a trustee.
4) Counselling Course
Before filing, you must remember to complete your credit counseling course.
5) Filing the Bankruptcy
There may be many locations near you where you have a bankruptcy court. You need to file bankruptcy where you have lived for the past 180 days, where your business is located, and where most of your assets are. Also while filing, you will have to pay a filing fee.
6) Meeting the Creditors (341 Meeting)
You must remember to disclose everything in the petition, as, after you file for bankruptcy, you will have a meeting with the Trustee and the creditors where they will check your finances, your assets, and liabilities, and all the other details mentioned. It is there that everything will be decided as to how your bankruptcy process will take place.
7) Financial Management Course
After filing for bankruptcy you will have to do a financial management course. After completion of the course and submission of its certificate, will the discharge process take place?
8) Payment Plan
If filing for chapter 13, you must have your payment plan ready. The trustees and the creditors can object to your plan and before it is finalized there may be a lot of changes in the same.
You will be eligible for a discharge only once the Trustee has reviewed your finance and has agreed to the same. There is still certain depth that cannot be discharged for example child support and certain taxes will not be discharged. You must choose the right type of bankruptcy, and choose the right Attorney to be sure that you don’t face any problems later.
10) Credit Rebuilding
After bankruptcy, your credit limit will be low at first but will increase over time if you wisely use your credits. You need to start using your credit card by paying off the entire balance every month. Over time you will be able to rebuild your credit score.
These are the basics of what to expect during bankruptcy. However, in situations unforeseen, there may be other problems that may arise in between. You need to be prepared for the worst, and plan for the best.