All that you need to about bankruptcy and expectations in bankruptcy consultation

You may feel the need to file for bankruptcy for many reasons, like your debts have become overwhelming and unmanageable, or you experienced job loss or reduction in income, that may make it hard to keep up with your payments and other regular financial commitments. Though filing of bankruptcy could be a difficult decision, especially when it has a stigma attached to it, nevertheless, it’s a legal option that gives you a chance to put your business together and have a financial restart.

However, not everyone is aware of which type of bankruptcy they qualify for, and how to proceed with it. It’s here that the expertise of specialist bankruptcy lawyers, such as Recovery Law Group, can make all the difference to your financial future. When you consult for bankruptcy, you will come to know that all individual bankruptcy cases are handled by federal courts in the USA. Most individual bankruptcies are filed either under Chapter 7, or Chapter 13 of the US Bankruptcy Code. 

You may be advised to file for Chapter 7 bankruptcy in case your average monthly income for the size of your family is less than the Median Income of a similar-sized family in your state. However, if you fail this Means Test, you may be advised to file for it under Chapter 13 wherein you will be given a period of three to five years to pay all your debts. Any debts after the completion of bankruptcy will be discharged or eliminated. 

 

However, before meeting your bankruptcy lawyer, you should be able to fulfill the below expectations in bankruptcy consultation, and have the following documentation ready:-

•         Bank statements
•         Loan agreements
•         Creditor’s information
•         Contract information
•         Receipts for any payments made
•         Foreclosure documents in case proceedings are pending
•        Correspondence with creditors (sue notice etc.)

Your creditors can no longer harass you 

All these and related documents will help the attorney with all background information about your financial problems. With this information at hand, work for the bankruptcy proceedings can be initiated sooner.

However, with experienced and specialist bankruptcy attorneys, you can have more expectations in bankruptcy consultation, such as the attorney will be able to enforce the Automatic Stay as soon as the bankruptcy is filed successfully. Intimidation will be sent to all your creditors by the attorney about your bankruptcy filing, and they will be informed to stop all their collection activities immediately, including calls, home or office visits, emails, letters, etc. One key expectation in bankruptcy consultation is that your creditors cannot contact you directly for any collection activities after filing for bankruptcy, rather they have to deal with your attorney afterward.

 

Not all is lost, some assets are still protected 

Another expectation in bankruptcy consultation is that your attorney will be able to avoid foreclosure or repossession of your house, and you may be able to keep a small car, and other essentials. Not all is lost even when you file for bankruptcy and your assets are liquidated to pay some parts of your debts to your creditors under the supervision of a court-appointed trustee. Some assets like homestead exemption of $27,900, tools of trade, car of up to $4,450 equity, clothing, social security benefits, disability payments, veterans’ benefits, and more. For more information on expectations in bankruptcy consultation, please contact Recovery Law Group.