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Filing for Bankruptcy Made Easy
Bankruptcy is not just for average people with enormous debt. Rich people, and even large companies, file for bankruptcy once their finances started spiraling down. In other words, people (or companies) file for bankruptcy if their debt problems went unmanageable.
It is important to understand that there is no shame in filing for bankruptcy. More importantly, you should not fear bankruptcy – it will actually give you a financial fresh start, not destroy your financial well-being.
Before, you dive into the subject, here are some things you'll need to know about bankruptcy (if you haven't read about them yet):
Now, without further ado, here are the steps you need to take when filing for bankruptcy.
STEP 1: Find an experienced bankruptcy lawyer you can trust
This may sound simple, but this is a very important step. Your bankruptcy lawyer will make or break your bankruptcy process, so be sure to choose wisely! So, what are the things you should look for a bankruptcy lawyer? Here are some of the following:
- Have a proven track-record of won cases
- Is experienced in your specific situations
- Must be client-oriented (other lawyers might be very skilled, but cares little for their clients)
Don't worry, LG Law Offices have the best and experienced bankruptcy lawyers in California. We make sure we meet the standards we set for ourselves!
Still, take the time to assess each lawyer on your own. Do review checks. Ask for recommendations. Most importantly, trust your gut and don't rush to hire one if you think you haven't found the lawyer you need yet.
STEP 2: Discuss your bankruptcy options with your lawyer
Basically, your lawyer is there to give you advice on your situation, so it's best to discuss your situation and possible options with them. Do not be shy and don't hide any crucial information.
You will also see the importance of a client-oriented lawyer here: a client-oriented lawyer will help you all the way in your case, charge you reasonable fees (sometimes, consultation time is free) and will make sure your case will be the most formidable it can.
STEP 3: Gather the necessary documents
You and your lawyer should gather the necessary documents needed when filing for bankruptcy. Some of these documents include accurate information about your income for the last three years, your assets, debts (creditors), your monthly expense, a list of all your properties (including clothing and electronics), your employment status/business status, etc. Your lawyer should guide you on this list, as this depends on the Chapter you decided to file for.
STEP 4: Pre-bankruptcy credit counseling session.
It is required by the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA of 2005) that all filers are required to complete a credit counseling session with an approved provider within six months of filing before their case can be filed.
STEP 5: Nonexempt property is handled.
Nonexempt properties are properties generally placed for liquidation, of which the proceeds will be given to your creditors as payment. Your nonexempt properties are handled by your bankruptcy trustee, and they will decide whether they should be sold and distributed to creditors or not.
Sometimes, it is possible to negotiate with the trustee to keep some of the nonexempt property if the filer can come up with enough cash to secure the properties.
STEP 6: Sign the petition and get the case filed.
Once the payment is made, your lawyer will prepare the necessary paperwork and have you sign the petition showing that you approve of the filing. Once you've signed, your lawyer will file your case for you.
STEP 7: The court reviews your eligibility for the bankruptcy Chapter
The bankruptcy court will review your case and determine if you are eligible for the case or not. Your eligibility depends on the bankruptcy Chapter you're filing for. Ask your lawyer for eligibility requirements for your chosen Chapter and see how can you be eligible for that case.
STEP 8: Pre-discharge financial management course.
After filing for bankruptcy and before you get a discharge, you must complete a debtor's education course according to the 2005 amendments to our bankruptcy.
After completing the class, you will file Form 423 certification of a financial management course with an approved provider before a case can be eligible for a discharge.
STEP 9: Court date
After you have filed a petition (and your papers well-examined by your trustee), a court date will be set for your case after 20-40 days. In this meeting, all your creditors will be there and they will question you with regards to your assets and financial capacity which you need to respond to. You will be asked questions by the trustee who will decide whether to approve the bankruptcy or make changes.
STEP 10: Discharge
This is when the case is officially finalized – but second to the last of the steps. The bankruptcy filer is discharged 60 days after the meeting with the trustee unless one of your creditors takes action against you.
STEP 11: Case closed.
Once your discharge is granted by the court, you get an official closure of your bankruptcy case. You no longer hold any debt obligation to most, if not all, your creditors. You can financially start again and move on with your life. Congratulations!
Filing for bankruptcy is that simple, though certainly not easy. But if you have a great bankruptcy lawyer around, your case should be winningly resolved! LG Law has the best bankruptcy lawyer that will help you with your bankruptcy case. You may visit, https://lglawoffices.com/bankruptcy/bankruptcy-attorney-ontario-ca/ for more information.