FAQ s on Bankruptcy Filing
Filing bankruptcy is something that has to be taken seriously. If you miss a part of the process or fail to file certain paperwork then your bankruptcy can be denied. You have to be sure that you understand everything about bankruptcy filing. Here are some common questions that help you to undersatnd more about the process.
What is the first step?
The first thing you should do when you decide to file bankruptcy is to decide what type you want to file. The two basic choices are Chapter 7 or Chapter 13.
The difference between the two is how your debts are cleared. In a Chapter 7 your debts are written off and in Chapter 13 you repay the debts through a court instated repayment plan.
With Chapter 7, though, any assets you have that are not exempt are sold to repay your debts. In a Chapter 13 you will likely get to keep your assets. This is important if you have excessive assets that you do not want to lose when you file bankruptcy.
Should I hire an attorney?
That is really your own decision. If you feel that you known all your debts and that you can correctly file all paperwork then you can probably do it alone. However, an attorney will help you through the process, answer questions for you and represent you in court against creditors.
If you have a lot of assets at risk or various creditors it can help to have an attorney who will be able to better ensure all your debts are covered and that as many of your assets as possible are protected.
How long will it take?
The length of the process can vary greatly. There really is no general timeline because there are many factors that effect how long it takes.
You have to attend credit counseling, which could slow down the process because you will need to wait for classes to start. You also have to go to court and that is dependent upon the courts docket and how busy they are. You may also have to wait for creditors who ask for some more time.
Overall, within a year after filing you should have completed the process in most cases.
What paperwork will I need?
You will need all the information about your debts and your finances. This includes:
- Creditor's names
- Creditor's addresses
- Debt amounts
- Income
- Previous year's taxes