Want To File For Bankruptcy? Think Twice

By Author: Best Debt Care
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Recession has left us in a state where “debt has become a part of who we are.” Law has placed bankruptcy for your protection, but protection only when you have no other resort. As many among us, who are caught in the quicksand of debts, would be contemplating on filing bankruptcy, with the prime question in mind on ‘how do I file for bankruptcy’ and how does bankruptcy work. Hence this article would cater to all those doubts and questions arising in your minds regarding bankruptcy filings.
Before filing on bankruptcy ensure that you have checked on all the alternatives you otherwise have. This is because bankruptcy seals your credit file for the next ten years. I do understand that your credit already might be in a bad shape, reason which you are looking to file for it. Bankruptcy does give you a fresh start. But as per the BAPCPA rules, one needs to obtain a credit counseling from an entity approved by the US Trustee before filing for the same. This counseling somehow tries to help the filer with some alternative which might not be found or understood.
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... Next check on under which chapter you would file the same, chapter 7 or 13. The former is the straight or liquidation bankruptcy whereas the latter is the repayment plan type. Chapter 7 filing is tough, as you need to qualify the ‘means test’, which makes many to opt for chapter 13.
Once you have made up your mind on filing for bankruptcy, research on the various options available. Some prefer to go about it without the aid of a lawyer, but it’s highly recommended to take lawyers help when filing for the same. In most cases, when you choose a big firm, they would let a paralegal handle your cases than a lawyer. Always try to have a direct contact with the attorney. The lawyer would decide the best fit chapter for you to file for.
Check out the bankruptcy costing, including the entire filing fee, other adminisntrative costs and the lawyer’s fee. In cases of chapter 7, you need to pay the lawyers fee in full before the case is filed. In cases when you still owe a part of the fee, it becomes uncollectible and the lawyer has to waive it off or can stop representing you, whereas in chapter 13, as per the payments agreed upon, can be made through or after the filing also.
Once you file for bankruptcy, none of the creditors can call on you and harass you. If they do, just refer them to the lawyer handling your case.
Once your lawyer submits the petition, you would get a mail notification with the date on which you would need to meet your creditors. This meeting enables the trustee to confirm your debt standings. This meeting would hardly be of 15 minutes.
In case you have filed for chapter 7, the trustee would decide on whether or not your assets need to be liquidated to repay the creditor. In some cases your assets are exempted from liquidation, wherein a ‘no distribution’ report is generated. The non exempt assets would be sold to repay your creditors.

Normally the 60th day from your meeting the creditors marks the deadline for the latter to file lawsuits to challenge the discharge of a particular debt. In absence of this, you would receive a ‘discharge’ notification in cases when you file for chapter 7. But if you have filed for chapter 13, you would receive the discharge only 30-60 days after your final payment is made.

To know on how bankruptcy and its filings visit www.bestdebtcare.com .