When individuals are faced with financial troubles, they may want to consider filing for bankruptcy. This can help them mend their finances and prepare for a more successful future. Bankruptcy is not something that should be totally avoided. It is put in place to help people. If you have no other options, bankruptcy can become a good way to improve your situation. When considering bankruptcy, consulting a legal professional can provide you with the best information possible. Our attorneys have handled many cases relating to bankruptcy. They have the skills and experience necessary to guide you through the process and toward a more successful future.
An automatic stay is a part of the bankruptcy process. When you file for bankruptcy, an automatic stay is put in place immediately to stop creditors from contacting you.
What types of bankruptcy can help me?
Individuals can consider two options for bankruptcy: Chapter 7 and Chapter 13. These two options present you with the opportunity to get your finances in order. This can help improve your current state by preparing you with a financial plan.
People have to be eligible to file for bankruptcy. Prior to filing, individuals must undergo credit counseling by a United State-approved agency and attend a debtor education course. Then they must pass the means test. The means test compares their income to the median income in the country. They can be eligible for bankruptcy if their income is below the median income.
Then the paperwork begins. A petition for bankruptcy must be completed. In this, you will be asked to claim a list of all debts, an account of your income, your monthly living expenses and a list of all assets, including real estate and personal possessions. Once the paperwork is completed, the automatic stay goes into effect.
The automatic stay will give you the space you need to create a repayment plan and better assess your finances with the help of an experienced professional. During this time, creditors are barred from contacting you. This can relieve some stress you are facing.
When filing for Chapter 13 bankruptcy, the process is similar. You need to receive credit counseling within 180 days before filing; however, if another petition was dismissed within the 180 days, you cannot file. Once you file for bankruptcy, you should file documents that include a list of liabilities, assets and property, a statement of financial affairs, a list of executory contracts and unexpired leases, proof of credit counseling and any plan developed to handle the matter, income payments within 60 days prior to filing, monthly net income and any indication in a rise of income or expenditures and interests the debtor has in state or federally-qualified education or tuition accounts.
Once the paperwork is filed, the automatic stay will go into effect as well. This can be seen as one of the most beneficial parts of filing for bankruptcy. You will not have to face harassment from creditors any longer.
For strong legal representation from an experienced personal injury, bankruptcy, workers’ compensation, criminal defense, or family law attorney, contact Underwood & Micklin and we would be happy to schedule a consultation to discuss your matter.