If you have tried every way imaginable to avoid bankruptcy but find that you
have no other way out of the situation, the first step you should take before
filing is to consult with a bankruptcy attorney. A bankruptcy attorney can be
hired or appointed by the court systems to help you through the court
proceedings. If you decide to select your own attorney, make sure to select
someone with previous experience in bankruptcy law, preferably someone who works
specifically with bankruptcy.
No matter which bankruptcy attorney you select, you should always be prepared
to ask the attorney questions regarding your own case. Here is a list of
questions you should always ask your attorney to make yourself more aware of
your bankruptcy proceedings:
* What type of bankruptcy is right for me?
Keep in mind that the Federal court system in the United States has eight
different types of bankruptcy filing available. Of course the two most popular
are Chapter 13 and Chapter 7, but there are a variety of different details and
rules that apply to each type of filing. A good bankruptcy attorney will be able
to sift through your financial difficulties and recommend the best type of
bankruptcy for you.
* How do I file for bankruptcy?
Filing for bankruptcy will need to be done in the state where you currently
live. If you plan to remain represented by a bankruptcy attorney, their legal
staff can help to prepare all of the paperwork that is necessary to present to
the court system. If you simply want to use the bankruptcy attorney for a
consultation, make sure you don’t leave the attorney’s office without the
necessary paperwork to begin the bankruptcy process.
* What type of fees will I owe?
This is important to ask in regards to your bankruptcy attorney as well as
the court system. Most bankruptcy attorneys will give a free consultation but
any remaining time on the proceeding or in court will cost a fee. Some attorneys
charge by the hour while others charge a flat fee for bankruptcy services. As
well, the court systems usually charge a court fee connected with filing the
case, administrative charges and extra Chapter 7 fees to pay a trustee in charge
of the bankrupt account.
* Where do I go to file my bankruptcy claim?
Bankruptcy cases are handled by the federal court systems in every state.
This usually means that the bankrupt party will need to give the bankruptcy
paperwork to the state courthouse, usually in a state’s capitol city. Your
bankruptcy attorney should know the address and rules regarding whether or not
paperwork can be sent by mail or if paperwork needs to be given in person.
* What happens after filing for bankruptcy?
Immediately after filing for bankruptcy, the court system will send out
notification to creditors of the pending bankruptcy case. From this point on,
creditors are considered to have a "restraining order" by the debtor and are not
allowed to contact the debtor requesting payment. Depending on the type of
bankruptcy, a hearing will be scheduled and deadlines will be set for creditors
to file a claim and attend the hearing. Of course, all of the proceedings from
here are dependent on the type of bankruptcy filed, so it is important to be in
contact with your bankruptcy attorney who can more readily answer these
questions.
Credit: Ian W Anderson of Bankruptcy 411, the bankruptcy information site.
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