If you face a mountain of debt that doesn’t get any smaller no matter what you do, you might have to file personal bankruptcy. Personal bankruptcy entails the court-supervised liquidation or restructuring of your debts, in order to pay off your creditors as much as possible. There are two chapters of the United States Bankruptcy Code that most commonly apply to personal bankruptcy: chapter 7, also referred to as liquidation, and chapter 13, or reorganization. Both forms of personal bankruptcy require a large amount of forms to be completed order to compile and complete your petition, as well as a thorough and up-to-date knowledge of relevant laws in order to attain the best possible terms for your personal bankruptcy and a fast discharge from the judge.
Because the process of filing any form of bankruptcy is so complicated, it’s nearly always to be advised to retain the services of a qualified chapter 7 or chapter 13 lawyer. A personal bankruptcy lawyer with extensive experience in representing clients in your state will know how to get you the fastest and most beneficial discharge.
There are a number of requirements you will have to meet before you file and if you haven’t met them before you hire a personal bankruptcy lawyer, he will instruct you how to meet them. First, you must seek credit counseling from an approved credit counseling bureau within six months before filing personal bankruptcy, and second, you must take the means test to determine which chapter you may file and are eligible for. As your personal bankruptcy lawyer will explain to you, your income level in the six months prior to filing is key is deciding whether you must file for a liquidation or reorganization bankruptcy.
Basically, this means that if you have enough income to support reorganization, your debts will be restructured so you can pay off your creditors over time. Once these first two steps have been accomplished, you can start preparing your personal bankruptcy petition with the help of your personal bankruptcy lawyer. It is essential that your chapter 7 bankruptcy lawyer knows the state and federal laws regarding bankruptcy, because these define which of your assets, if any, you may consider exempt from your personal bankruptcy filing. With the assistance of a knowledgeable personal bankruptcy lawyer, your personal bankruptcy can be conducted smoothly and quickly.
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