Steps to Take to Start the Bankruptcy Process

If you are dealing with financial obligations that you cannot afford to pay, bankruptcy may be your best option for improving your situation. While many people are hesitant to file bankruptcy, there is no reason to be ashamed about doing so.

Filing bankruptcy can allow you to get a “clean slate” and live debt-free. However, because bankruptcy laws are so complex, filing for bankruptcy can be an intimidating and challenging process.

For many years, the bankruptcy attorneys at Loan Lawyers in Fort Lauderdale, FL have been helping individuals pursue bankruptcy so they can get a fresh financial start. Contact the experienced Loan Lawyers today to schedule a free, no-obligation review of your financial situation. We can provide free legal advice about the steps in the bankruptcy process.

If you need to start the bankruptcy process, Loan Lawyers recommends that you take the following steps:

Step 1: Find a Bankruptcy Attorney

It’s critical that you find an experienced bankruptcy lawyer who will have your best interest in mind and who will be forthright and honest about your best options – whether it’s bankruptcy or another route altogether. Make sure that you are comfortable with the bankruptcy attorney you select.

Step 2: Conduct a Bankruptcy Counseling Session

In the majority of bankruptcy cases, you will need to get credit counseling within 180 days before filing for bankruptcy protection. You must also complete a course on debt management before you are eligible to have your debts discharged.

The bankruptcy counseling session is intended to ensure you have exhausted all other options and decrease your chance of having to make another visit to the bankruptcy court in the coming years.

A pre-bankruptcy counseling session with an approved provider should include:

• A review of your finances
• Information on the alternatives to bankruptcy
• A plan for your personal budget

Credit counseling sessions typically last about 30 minutes and can be completed online, in-person, or over the phone. If you cannot afford to pay for the sessions, you may request a fee waiver before the session begins. Depending on where you live, a counseling session generally costs around $50.

Step 3: Complete a Petition and Paperwork

The bankruptcy petition consists of forms and schedules. If you are married, you must complete just one set of forms with information for both you and your spouse. Your particular court may require local forms.

Your bankruptcy lawyer will complete the paperwork on your behalf. Make sure you do not omit important information about your finances on your bankruptcy disclosures. This can result in your filing being delayed or even dismissed.

Step 4: Meet the Trustee

It’s the responsibility of the trustee to review your bankruptcy forms and investigate and verify your financial information. The trustee must make sure your bankruptcy claim is not fraudulent. Your trustee is also responsible for managing your assets, including collecting your property, converting your assets to cash, and distributing the proceeds to your creditors.

Step 5: Attend a Meeting of Creditors

The meeting of creditors is when the trustee and your creditors get a chance to ask you questions under oath about your petition and the documents you are required to provide to the trustee.

The meeting of creditors is basically a hearing used to verify that the information contained in your bankruptcy papers is complete and accurate. You will also be required to prove your identity by presenting two forms of identification. These steps in the process of filing for bankruptcy help prevent fraudulent filings from occurring.

Why You Shouldn’t File for Bankruptcy Alone

It’s a do-it-yourself society today and when people are filing for bankruptcy, they often don’t even think about hiring a lawyer that will help them do it. This is a big mistake. The bankruptcy rules in Florida are complex. Failing to follow them, or making even one small mistake on a document can get your bankruptcy denied. That means you won’t get the financial help you desperately need. A Fort Lauderdale bankruptcy attorney will help ensure that doesn’t happen and that your case has the greatest chance of success possible. Below are just a few of the ways an attorney will help with your bankruptcy case.

Interpreting Relevant Bankruptcy Laws

Bankruptcy laws in Florida are extremely complex, and they are also very numerous. It takes a great deal of time to sort through all of the different laws, understand them, and determine which ones apply to your case. An attorney will understand all of these things immediately after reviewing your case. A lawyer will also keep up to date with bankruptcy laws, which are constantly changing.

Determining Which Type of Bankruptcy You Should File

There are several different types of bankruptcy, of which Chapter 7 and Chapter 13 are the most common. Each type of bankruptcy will discharge different debts, and each has different eligibility requirements. Comparing the two types of bankruptcy and all the factors associated with each is challenging. Understanding which one is right for you is even harder. An attorney will outline all of your options and then advise on which type of bankruptcy is best for you.

Protecting Yourself from Lenders

When you file for bankruptcy, lenders are generally barred from contacting you again to try to collect on the debt. However, not all creditors abide by this law. They often continue to try and collect the debt, and may even threaten you. If you don’t have an attorney representing you, it can be difficult to get these calls to stop. If you do have an attorney, you can simply advise creditors of that and provide them with your lawyer’s contact information. The chances are they won’t contact you again, and they won’t contact your attorney, either.

Avoiding Costly Mistakes

There is a lot of paperwork involved when filing for any type of bankruptcy. It’s not only time-consuming to complete, but it’s also very confusing, too. The terms and clauses are not written in a way many people can understand, and it’s easy to make a mistake.

The most common mistakes made when filing for bankruptcy are filing in the wrong court, failing to file the correct document, and failing to attend credit counseling courses. When these mistakes happen, they are often very costly. It can cause your entire bankruptcy case to be thrown out, requiring you to start the process all over again.

An attorney will ensure these mistakes are not made. While you will still have to gather information, such as banking statements, an attorney will tell you exactly you need. They’ll also deal with the paperwork they are extremely familiar with, so you don’t have to.

Protecting Your Consumer Rights

During bankruptcy proceedings, the creditor is working against you. They don’t want your bankruptcy case to be successful, because then they won’t be able to collect on the debt. As such, they’ll try to do whatever they can to disrupt your case. This often happens in the Meeting of Creditors, a requirement in any bankruptcy case. During this meeting, you are sworn in and must provide answers under oath. If it’s found you were not honest with your answers, you could face perjury charges.

Typically, the Meeting of Creditors is simply a formality and is largely uneventful. Sometimes, though, a creditor will try to use a shady tactic to hurt your case. For example, they may ask why you made large payments to other creditors recently, but not to them. They may also ask where your assets are located. They are doing this to rattle you, and to attempt to get you to say something that will hurt your case. An attorney will not let them get away with these tactics and will ensure your rights are protected.

Negotiating with Creditors Effectively

If you’re filing a Chapter 13 bankruptcy, you may have to negotiate with creditors to determine a reasonable amount of debt to pay back. With this type of bankruptcy, you don’t usually pay back the full amount. During a Chapter 7 bankruptcy, creditors may argue the amount of debt discharged, or file a lawsuit during the waiting period. A bankruptcy will negotiate with all of these creditors, and attempt to stop lawsuits filed just prior to your bankruptcy claim.

Having More Chances of Succeeding

Lastly, but perhaps more importantly, an attorney will give you a better chance of success with your bankruptcy case. There’s a lot that can go wrong in bankruptcy, and an attorney will make sure those things don’t happen. Bankruptcy attorneys are professionals who deal with bankruptcy law and bankruptcy claims every day. They know the system, what’s required of you, and how to give you the best chance of success with your claim. This provides the confidence and reassurance you just don’t have when filing a claim on your own.

How the Bankruptcy Attorneys at Loan Lawyers Can Help

At Loan Lawyers, we are experienced consumer rights attorneys ready to use our skills, knowledge, and resources to develop a comprehensive debt solution strategy for you. We are prepared to take on your burdens, resolve your issues, and give you confidence in knowing you are on the path to a better future.

To schedule a free initial consultation, call now or reach out to us online.