If you are considering bankruptcy, learning about the basics of this legal process and getting preliminary bankruptcy information is crucial.
When filing for bankruptcy, the very first thing filers must do is to contact a trusted bankruptcy law firm. Taking the means test and undergoing bankruptcy counseling is indeed necessary. However, they can be done after your initial consultation with a local attorney knowledgeable on relevant state law. A bankruptcy attorney from a reliable law firm can explain to you the bankruptcy process, and how to file these proceedings in bankruptcy court.
Individuals struggling financially often look into a bankruptcy case to address their financial problems. Declaring bankruptcy is considered by many as a viable debt-relief option since a successful bankruptcy filing can help one pay back lenders, wipe out certain debts, and enable someone to have a fresh start at life financially.
Keep in mind that no two bankruptcy cases are similar to each other. There are varied types of bankruptcy proceedings, which are most apt for different circumstances and types of debt. A person filing for bankruptcy generally tries to have debts forgiven either after having assets liquidated or making payments specified in the debt-repayment plan. Such will depend on the particular bankruptcy chapter.
What is a bankruptcy discharge?
The bankruptcy code provides for what is called discharged debts. After you declare bankruptcy, whether under filing Chapter 7 (liquidation) or Chapter 13 (reorganization), a court order will formally discharge what you owe from specific lenders. Legal help from a reliable bankruptcy lawyer is key if you want to know the differences between varied bankruptcy filings brought to court.
After a successful declaration of bankruptcy, debt collectors are generally prohibited from asking for repayment for what was owed. This means that a debtor need not pay off creditors of loans that were wiped-out through a bankruptcy case.
Although discharged debts are more commonly associated with a Chapter 7 petition for a bankruptcy petition, certain debts may also be discharged in a Chapter 13 bankruptcy petition.
Under relevant bankruptcy law, after making all monthly payments stated in the payment plan, a bankrupt individual could likewise have certain debts forgiven.
Individuals who filed for bankruptcy may have most unsecured debts discharged, including unpaid credit card bills and medical bills. Certain tax debt and personal loans could also be forgiven, although this is specific to each bankruptcy declaration. There are some instances, for instance, where creditors of the individual who files for bankruptcy attempts to have certain debts declared as non-dischargeable.
In contrast, student loans, alimony or child support, certain tax debt, criminal fines or penalties, and other similar debts are rarely dischargeable, even after declaring bankruptcy. To know what types of debt will likely be discharged after filing bankruptcy, getting legal help from experts is crucial. Note that specifics of bankruptcy rules could vary from court to court. Bankruptcy attorneys can study your situation and help you decide on the steps you must take.
Most people proceed with filing bankruptcy to have debts eliminated. How actual proceedings will go, however, will depend on your specific financial problems. If most of your debts are dischargeable, then a liquidation could indeed be ideal. If most of them are not, however, working on a creditor payment plan could be a better option. According to bankruptcy laws, such will enable you to settle what must be paid off within a longer period.
If things go well, the bankruptcy court will send a notice to the individual overseeing your case, or your bankruptcy trustee. The discharge notice will also be sent to unpaid creditors concerned, which will then stop any creditor or debt collector harassment.
Hands-on bankruptcy lawyers from a trusted law firm can also explain how this can help you avoid repossession or foreclosure of your personal property. He or she can also help you fill out bankruptcy forms, work on the required paperwork and supporting documents, and prepare you for the steps you must take after bankruptcy.
When dealing with debt, make the most out of your would-be bankruptcy proceedings. For questions on discharge, the bankruptcy process, or how to file for bankruptcy, give us a call at 270 387 1414. Contact us at Farmer and Wright, PLLC to consult with a reliable bankruptcy lawyer.