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Filing for bankruptcy is a huge decision, but one that can grant you a fresh start financially. If you’ve decided to file for bankruptcy, you’ll need an attorney to guide you through the process. Hiring a bankruptcy attorney can be overwhelming, especially if it is your first time. But don’t worry; in this beginner’s guide, we’ll walk you through what to expect when you hire a bankruptcy attorney.
Initial Consultation
After finding a bankruptcy attorney, you’ll need to schedule an initial consultation. During this meeting, the attorney will get to know you and learn about your financial situation. The attorney will ask you questions about your debts, income, assets, expenses, and other financial circumstances. The purpose of this meeting is to determine if bankruptcy is the best option for you and if you are eligible to file for bankruptcy.
Filing for Bankruptcy
Once you decide to proceed with bankruptcy, your attorney will file the necessary paperwork with the court. This includes a bankruptcy petition, schedules listing all of your debts, assets, and expenses, and other required forms. Your attorney will also take care of notifying your creditors of your bankruptcy filing.
After filing for bankruptcy, you’ll be required to attend a creditors’ meeting. During this meeting, you’ll be asked questions about your petition and financial situation. It’s important to remember that this meeting is not a court appearance, and the trustee who oversees your case will conduct the meeting. Your attorney will accompany you to this meeting.
Negotiations and Settlements
If you’re filing a Chapter 13 bankruptcy, your attorney will assist with negotiations and settlements. Your attorney will work out a payment plan, taking into account your income, expenses, and debts. The trustee and your creditors will have the opportunity to object to the plan, but your attorney will advocate for your best interests and help you reach a fair agreement.
Final Discharge
The final step in the bankruptcy process is discharge. This occurs when your debts are officially wiped out. In Chapter 7 bankruptcy, discharge typically happens 4-6 months after filing. For Chapter 13 bankruptcy, discharge happens after you complete your payment plan, which can take up to five years. Your attorney will ensure that all the necessary steps are taken and will advise you on how to rebuild your credit after your discharge.
Filing for bankruptcy can be a stressful and confusing experience, but hiring the right attorney can make all the difference. With an experienced bankruptcy attorney by your side, you can be confident that your bankruptcy case will be handled professionally and ethically and that you’ll be guided through the process smoothly. Keep in mind that filing for bankruptcy is not giving up but rather a fresh start with manageable debt. By following some simple recommendations, an individual or a business can bounce back from financial distress. We hope this beginner’s guide has given you a better understanding of what to expect when you hire a bankruptcy attorney.
