Monday, December 26, 2016

A Step By Step Guide To Bankruptcy Basics

If you have ever been to a book store, or searched online for a “how to” guide, you have probably come across top ten lists or books with illustrations on how to get something done. There are guides for just about everything, from how to repair a leaky faucet to how to paint your toenails. If your question involves how to budget your money, how to get out of debt, or what to do if you are not able to pay all of your bills you may have found articles and lists on what bankruptcy can do for you. But the best source for bankruptcy basics is to ask a qualified attorney who has experience filing bankruptcy cases.

A step by step guide to some bankruptcy basics, and what you can expect if you have decided to file a case includes the following:

         Bankruptcy is designed to eliminate debt you can no longer pay, so your money is freed up to pay for the things you need. The process is initiated by filing a petition. The petition will list out all of your debts, and all of your assets. In order to get this information in one place, you will need to hang on to your paystubs and make a list of all the debts you pay each month.
         Once your documents have been examined by a bankruptcy attorney, you will be told what chapter of case you qualify to file. A Chapter 7 is a liquidation of your debts, and a Chapter 13 is a plan of reorganization of your debts.
         After the case is filed, you will appear before the Trustee who has been assigned to oversee your case, and answer any questions about your debts. This is called the 341 meeting, and some of your creditors may be present as well. The questions from creditors are usually harmless, and focus on whether you intend to keep making payments.
         In a Chapter 7, you can expect to receive your discharge between 3 to 6 months after you file and in a Chapter 13 the timeline is up to 5 years. Once discharge is entered, the debts included in your case are no longer due. But this does not mean that you have to pay them during your case, you do not (unless you reaffirmed the debt, or  are repaying it through a Chapter 13 Plan).
         During your case you do not have to worry about being harassed by your creditors for payments, because all collection actions have to stop the minute your case is filed. This includes wage garnishments, foreclosures, collection lawsuits, and repossessions.
Every case is different, and we make sure to let you in on any unique facts about your case from the start. Our goal is to help you get out of debt, while understanding how the process works. Call today to find out more.

For more information about bankruptcy and how to manage debt, call us today or reach us online at We will help by coming up with solutions that work for you and have multiple locations for more convenient one on one office visits.

1 comment:

  1. Great post!!Thanks for sharing it with us....really needed. As an experienced New Jersey bankruptcy attorney, we understand that financial problems can happen to good families who work hard, and we dedicated to helping people save their homes and get back on their feet by offering solutions, not just a “quick fix”...New Jersey Bankruptcy Lawyer