Steps That Should Be Taken When Declaring Bankruptcy
Have you been debating whether you should declare bankruptcy or not? Are you on the verge of Declaring Bankruptcy and you need to know how to do it? Before you declare bankruptcy it is extremely important that you are sure that’s the only option. A helpful tip to give you before you become bankrupt is for you to see a credit or financial counselor. You could also try to get a loan modification or negotiating with credits could be a good idea. Declaring Bankruptcy is not an easy process, which is why you must follow these steps in order to have an idea while Declaring a Bankruptcy:
Hire a lawyer: This is a complicated process, hiring a lawyer will make sure the file is completed correctly and there is nothing missing.
Filing for a bankruptcy: There are two types of bankruptcy filings which are the Chapter 7 and Chapter 13. The Chapter 7 will clear out all your debt, you may be able to keep all your house as long as its payment is up-to-date. You must meet the income limit to apply for Chapter 7. Chapter 13 allows you to pay back the money owed to the creditors between 3 to 5 years.
Consumer credit counseling: It is a requirement if you’re filing for bankruptcy. This allows you to be sure that you’re filing property for the correct type of bankruptcy.
Meeting of creditors: In this meeting you will be agreeing to the terms of the filing, and answering the bankruptcy petition’s questions.
Making a decision: After 60 days, the creditors will make a decision of filing for a lawsuit or discharging the debts if you filed for Chapter 7. After 30 to 60 days, if you filed for Chapter 13 then you will be starting your payment plan.
Rebuild your credit: Changing old habits to new ones, such as paying bills on time. It is recommended to get help from a financial coach in order to make sure you don’t fall into the ditch of debt again. Remember that not all debt is discharged which is why it’s important to keep up with all the payments due.
Declaring Bankruptcy requires a professional lawyer to make sure all the paperwork is filed correctly. A smooth process is important to avoid any future problems that might cause you more stress than what you already have. Make sure that you do not hide any money from the creditors because they will find it. Don’t sell your assets for money because they will take away that money, plus it will get you into an even bigger trouble. Make sure you stay calm throughout this whole process, don’t let stress get the best of you and get help from a professional lawyer to get you through this process.
Relieve your stress while Declaring Bankruptcy by making sure you know all the steps that ensure a smooth process, call today if you have any further questions!