You have discussed the possibility of filing bankruptcy with your family in detail, and feel as though you are set to make the decision. However, you have several doubts about the bankruptcy process, and do not want to spend hundreds of dollars getting advice from a lawyer. There are several sites that will allow you to get free bankruptcy evaluation, so that you can be educated about the process as you’re working to better your financial health.
Before you download your chapter 13 bankruptcy checklist for filing, you will want to realize what type of bankruptcy you’re filing for. If you’re looking for a loan consolidation type of program, you may want to file for Ch 13 bankruptcy. This will stop creditors from calling, and will stop you from facing foreclosure or wage garnishments. You submit your Ch 13 repayment plan to the bankruptcy trustee, and you will be assigned a plan that will allow you to repay your debts in 3-5 years. The federal court will issue an automatic stay for you, which means that this will stop all creditors from taking any more action on your accounts. About a month after the ruling, you’ll be required to attend a 341 meeting that will last for about 15 minutes. This meeting will allow your lenders to question whether or not you can pay your debts. The creditors will usually ask if you can pay at least 50 cents on the dollar, and if you are not able to do so, they won’t object to your bankruptcy.
You will also need to find out if free chapter 7 bankruptcy forms are available from a local agency if you’re going to file for Ch 7 bankruptcy. This will allow you to have all your assets organized according to what you can pay. You’ll still have to attend a 341 meeting for this type of bankruptcy so communicate with your creditors as much as possible to come up with a solution.
It is a good idea to take free bankruptcy evaluation offers from the internet. In most cases, your initial consultation will be free, so be sure to get as much info as you can at the first meeting so that you can continue the filing procedure on your own if need be. You can also choose to do it yourself bankruptcy if you want to save on legal expenses.
Before you fill out and send in your bankruptcy papers, it’s essential to make sure that you take a serious look at your finances to determine if there are any debt consolidation tools that you and your family can put into place without legal help. Bankruptcy should be your last resort, but it can help you to restore your credit successfully.
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