The process for filing for bankruptcy protection can be rather complex and time consuming for most individuals. This is why hiring a bankruptcy lawyer in Sicklerville to handle these detailed steps and processes on your behalf in front of the United States Federal Court is very important to ensure your case is handled quickly and without costly mistakes.
To give you a better understanding of how the process works, here are the main steps your bankruptcy lawyer in Sicklerville will need to take in order to ensure a successful and legal bankruptcy filing:
Step One: Understanding your Status
The first thing which needs to be done for any individual or business preparing to file for bankruptcy protection is to gather all personal and business finances. This includes, but is not limited to, all secured and non-secured debt, IRS Federal and State tax returns for the past two years, titles or deeds to any property owned such as homes and automobiles and any loan documents you might possess. The best way to begin this process is to order a copy of your consumer credit report through all major credit agencies.
Step Two: Prepare for Credit Counseling
After you’ve hired your bankruptcy lawyer in Sicklerville to help organize your case, you will need to receive credit counseling by an approved agency within the first six months of filing for bankruptcy protection. This is mandated by the Federal Government to ensure that you have explored every possible debt solution prior to filing for bankruptcy protection.
Step Three: Select the proper filing option
In the United States, there are two common types of bankruptcy protection; Chapter 7 and Chapter 13. Chapter 7 filing involves liquidating some of your assets while Chapter 13 permits filers to repay their debts under a supervised plan. In order to qualify for Chapter 7 protection an individual needs to pass the qualification standards set forth through a means test. The bankruptcy lawyer you hire will help you to determine which filing is best for your individual needs.
Step Four: Filing Your Case in Federal Court
After you have consulted with your bankruptcy lawyer and have gathered appropriate financial records, official Federal bankruptcy forms are needed to be filed in United States Federal Court in order for bankruptcy proceeding to take place. The Federal Forms often require complete and full thought out answers to multiple questions about your current and previous financial status. If you choose a Chapter 13 filing, you will need to provide a proposed repayment plan.
Step Five: Meeting of Creditors
After you file, the court will permit each creditor to show up for a meeting with you and your bankruptcy lawyer through the federal court magistrate. This is often referred to as the “341 Meeting”. The debtor must appear at this meeting and creditors are given the opportunity to file a lawsuit against your filing and ask you questions under oath. However, in most cases the debtors do not show up. If no creditors show, you will be provided with notification from the court that the bankruptcy has been discharged.
The process includes several other important steps and timelines which need to be followed strictly. These are best handled by hiring a bankruptcy lawyer in Sicklerville who can guide you through this process smoothly and affordably.
