Bankruptcy-How to File
It is legal to file your own petition for bankruptcy but it is advised to be careful. There have been changes made to the Bankruptcy Laws in 2005. The first step in filing Bankruptcy is choosing which Chapter of Bankruptcy you are going to file. It is advised that you seek the help from a Bankruptcy Attorney because there are so many rules and regulations on which Chapter is suitable for who to file. From there you must notify your creditors, and accumulate all the necessary documentation required to proceed with Bankruptcy Proceedings.
The Filing Process For Bankruptcy
It is perfectly legal to file your own bankruptcy petition without a lawyer. However, careful consideration is needed if your situation is complicated. If you decide to file on your own be aware of the changes in law made in 2005.
If you decide that you want to file for bankruptcy on your own, the first decision you have to make is which kind of bankruptcy you should file for. These decisions cannot be made fast. So it would be a good idea to visit your local library and talk to a few people who might know more technical information about filing for bankruptcy.
On the other hand, it might be a safer option to get in touch with a bankruptcy lawyer who can guide you through the complicated procedure of filing for bankruptcy. You will have to provide you bankruptcy lawyer with all your personal information in order to put together and file your voluntary petition. Once the documents are filed at the bankruptcy court, you will be assigned a trustee who will see to it that all the information that is needed is collected from you and that all the information provided is accurate. The next step would be to notify your creditors that you will be filing for bankruptcy so that they will have to stop all actions they might be taking up against you to get your payments. The later procedures include meeting the various parties who are involved in your bankruptcy case, together with your creditors and if possible your creditors’ lawyers.
Before choosing a lawyer make sure he or she is familiar with the laws and procedures and is represented with a good reputation. Its crucial that he or she understands your financial (and emotional) problems and offers helpful solutions.
You can, and should, discuss your lawyers professional fees in advance and fully understand what procedures are included in the fees. This will give you a clear idea of what the bankruptcy procedure will cost.
In addition, discuss with your lawyer whether or not there will be additional fees if there are proceedings required other than the filing of the case. Your lawyer’s responsibilities will include preparing and filing petitions and additional schedules and attending the creditors meeting.
In some states, filing for bankruptcy may also include preparing and filing a homestead deed. In addition, in the case of a chapter 7 bankruptcy, there may be a reaffirmation agreements to be negotiate sign, and file; objections to exemptions, homestead declarations to complete; or objections to the discharge of some or all of the debts. In a chapter 15 case, your lawyer may have to deal with objections to approval of your repayment plan or the way you have valued your assets. In either case your lawyer may have to respond to your creditors’ motions for relief from the automatic stay, which seek court approval to repossess property or foreclose on real estate.
In some chapter13 cases, you can pay your lawyer from the assets of your estate. This is not the case with lawyer fees under chapter 7. Bankruptcy can be very intimidating but it also can be quite beneficial with the right care and expertise.