The Legal Process of Bankruptcy
Kimberly Ann Bastes
The Legal Process of Bankruptcy
Whether you're struggling to pay your bills or you're about to be foreclosed on, bankruptcy can be an option for getting rid of your debts. In fact, it can be a great way to get back on track financially and even regain your credit. But before you decide to file, it's important to know more about what will happen.
The first step is to consult an attorney. Your lawyer can tell you what the legal process will be and how it will affect your financial life. In addition, your lawyer can help you find out what you can do to avoid bankruptcy. You can also work with a credit counselor, who can help you understand what options are available to you and how to make the most of them.
When filing for bankruptcy, you will be asked to submit a list of your creditors and assets. You will also have to describe the total amount of your debts, income and expenses over the past few years. You will also have to include current utility bills, cell phone, landline and cable television subscriptions, Internet service, heating and cooling, as well as any other household expenses. You will have to obtain rental agreements and mortgage statements from the companies involved in your mortgage.
Once you have a complete list of your creditors, you will file a petition with your local bankruptcy court. The court will appoint a bankruptcy trustee to manage your case. The trustee will then review your financial records and determine if your case is viable. The trustee will then schedule a meeting of creditors. This meeting is called the 341 meetings.
At this meeting, your creditors will question you about your income, where you live, and what you're doing with your property. They will also question you about other relevant matters. Generally, the meeting will last for a few minutes. Your creditors are not allowed to waive their rights if you don't show up.
You will have to attend the 341 meetings if you want to be discharged from your debts in bankruptcy. You will not have to go to the meeting if you're not in a financial crisis. If you are in a financial crisis, your creditors may object to your discharging your debt in bankruptcy.
You will be able to keep certain types of investments and property through bankruptcy, including a home, motor vehicle, recreational equipment, and certain investments. In some provinces, you are exempt from the seizure of these assets. However, there are other types of debt that are not eligible for discharge in bankruptcy, such as student loans, taxes, alimony, and child support.
You will also have to take a credit counseling course before you file for bankruptcy. This course is offered through an agency that's approved by the U.S. Government. It is recommended that you complete this course before you file, though it isn't required. The certificate of completion will be filed with your bankruptcy paperwork. It will be valid for 180 days.
If you need a lawyer, please call this law firm for a free consultation:
Ascent Law LLC
8833 S Redwood Rd Suite C
West Jordan UT 84088
801 676 5505
www.ascentlawfirm.com
