Bankruptcy is a valuable tool that allows you to get rid of overwhelming debt, or at least reduce the amounts you owe. But you will only reap the benefits offered if you are understand how the process works, and play your part in the case. Typically, this means you need to provide all of the debt and income information to your attorney, so your petition can be prepared. You will also be required to appear at an initial hearing before the Trustee assigned to your case, and answer any questions the Trustee has as well as any questions from creditors. You can expect the Trustee to ask you about your assets, and what lead to the need to file bankruptcy. This line of questioning is not intended to embarrass you, or to pepper you with questions. As for the creditors that may be present at the initial meeting, you can expect to be asked whether you intend to reaffirm the debt held by the creditor. Most times the lenders for your house and car ask these questions, as unsecured credit card debts are rarely reaffirmed. Once your initial hearing is over, you may or may not have to return to Court.
The process described above is a pretty basic overview of bankruptcy, and most cases go off without a hitch. Some of the more specific things you might encounter during your case include:
• If you file a Chapter 13 you will need to come up with a plan of repayment of your debts. This plan will include repayment terms for all the debt you have, including unsecured debt. The amount paid back to an unsecured creditor will only be a percentage of the total debt, most times just pennies on the dollar. As for your secured debts, a Chapter 13 will allow you to pay past due house payments out over time, and you can pay the value of your car rather than the full balance owed.
• If you have student loan debt, you should not expect to get out paying it back unless there are extraordinary circumstances. If you believe this to be your case, it is critical to have your attorney perform an in depth review of your overall financial picture and what your financial picture will look like even after you file your case. Once this is done, a determination as to whether you should attempt to discharge student loan debt can be made.
• If there are judgment liens on any of your property, you may be eligible to have those released during your bankruptcy. It is essential to make a request for the removal, so be sure you let your attorney know about any liens against your property.
Once you have made the decision to file for bankruptcy, let us help you. We will take your data and provide you the information needed about how your case will be filed, and then file for you. Call us to learn more.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.