Bankruptcy is a legal process that gives you the chance to discharge your qualifying debts. Deciding to file for bankruptcy is a big step to take. You are faced with multiple things to consider – you have to understand what bankruptcy may (or may not) do for you. You have to evaluate your options and prepare yourself for the consequences of filing for bankruptcy. Once you have decided to move forward with debt relief, here are the processes involving bankruptcy:
Consult and hire a good bankruptcy lawyer
It is essential to consult and hire a good bankruptcy lawyer that understands and is experienced with bankruptcy laws. You can get good attorneys through recommendations from friends and family or check for bankruptcy attorney information through your state’s bar association directory. Ensure you are comfortable with the attorney and ask all the necessary questions.
Attend a pre-filing bankruptcy counseling session
Two credit counseling sessions must be completed with an approved counseling agency when filing for bankruptcy. The counselor will discuss your options with you, the implications, and, if possible, and alternatives to filing bankruptcy.
File for bankruptcy with the court
When you file for bankruptcy with the court, it appears on your credit report, and it invokes an “automatic stay,” which notifies your creditors to stop contacting you in an attempt to collect your debt.
Decide on either filing a chapter 7 or chapter 13 bankruptcy
This process involves either to liquidate assets of value to repay your creditors, or you repay a portion of your debts. A timeline for bankruptcy is set depending on the type of bankruptcy you filed.
Debtor Education Course
There are specific duties to complete before your debts are discharged and eliminated. Such as completing a debtor education session, which could be online or by speaking with a counselor.
Debt discharge and elimination
Once you have completed your bankruptcy duties, your debts are wiped off, and the obligation to pay creditors included in the bankruptcy is removed. After your qualifying debts have been eliminated, you can begin rebuilding your credit.
Contact a Fort Worth bankruptcy attorney to see if starting the bankruptcy process is a good plan for you to eliminate your debts to get financial relief.