When it comes to filing for bankruptcy, you might be wondering what the basics are. The process might seem complex, ungainly, and even a bit archaic, but it is actually relatively simple to learn about.
How the Process Works
Firstly, someone filing must attend credit counseling, generally an hour- to one-and-a-half-hour long session that involves evaluating your situation, detailing a plan for bankruptcy, putting together a personal plan for how you’ll deal with your new financial state, and reviewing the various alternative options available to you.
Once it’s determined that filing for bankruptcy is the best option, a process to choose the appropriate measures is enacted and the filing process begins. The options of Chapter 7 or Chapter 13 are available to you. Each holds different aspects and properties. Chapter 7 can last for up to 1 a year, whereas Chapter 13 operates for 3 to five years. Before considering either category, know that there’s a risk of trustees liquidating your various remaining assets in order to appease various collectors and the like. However, bankruptcy exemption laws often protect much of your essential property items.
When the process is complete, an automatic stay is placed on your assets, preventing a variety of things like repossession, eviction, and foreclosure. The stay will also protect you from wage garnishments and other pay dockings you might have been subject to previously.
After filing, you’ll be required to consult with a Dallas bankruptcy lawyer about which of your liquidated assets will be going to them. Some of your personal property is exempt from various federal regulations, though.
Finally, you’ll have to take various post-filing education classes to help better your financial wellbeing, as well as deal with the ramifications for filing for bankruptcy. With these steps completed and the bankruptcy process behind you, you’ll be able to move toward a better financial future.