Applying for bankruptcy is a powerful procedure that can be used to protect debtors from further debt recovery attempts. It is used to better manage or get rid of substantial debts by reorganizing or eliminating some liabilities. A bankruptcy claim, however, can be daunting and complicated if you don’t have help. In this bankruptcy guide, you can learn more about the types of bankruptcy, how to file for bankruptcy, and how our lawyers can help you in your case.
Types of Bankruptcy
Chapter 7 bankruptcy is intended to assist persons who are incapable of repaying their outstanding debts. It enables you to eliminate the majority of common consumer debts, such as credit card payments, personal loans, bank account overdrafts, medical expenses, utility bills, and some tax debts.
Chapter 13 bankruptcy involves an interest-free loan repayment schedule that you can afford and can repay over time. Unlike a Chapter 7 bankruptcy, which sells off your possessions to repay creditors, a Chapter 13 filing permits you to retain assets like your house or your vehicle.
Attorney Fee + Court Fee $338 (Chapter 7) or $313 (Chapter 13) + Bankruptcy Courses Fee $15×2
A bankruptcy attorney’s fee is usually a small percentage of the overall debt that the client is able to discharge. The Bankruptcy Court mandates everyone to take two Credit Counseling Bankruptcy Courses: one before your case is filed and one after.
Consultation and Application Process
- Consultation with a bankruptcy lawyer
- Take the first Credit Counseling course
- Provide all required documents
- Meeting for retainer and paperwork
- Legal review
- Bankruptcy case filed
- Take the second Credit Counseling course
- 341 meeting with creditors: 30 days after case filing
- Debt discharge: 90 days after case filing
- First Credit Counseling course certificate
- Driver’s license
- Social Security card
- O.F.A. questionnaire
- Bank accounts for the past 6 months
- Proof of household income for the past 7 months
- Tax returns for the past 2 years (Chapter 7) or 4 years (Chapter 13)
- Second Credit Counseling course certificate
- Recent bank statements reflecting your account balances on the date the bankruptcy claim was filed