Before talking to a bankruptcy attorney, it is important that you know what your options are.
Filing for bankruptcy can be an extremely confusing process, and it will benefit both the client and the lawyer if there is no miscommunication or misunderstanding about which type of bankruptcy they want to file.
First, you have to decide whether or not you want to file for Chapter 7 or Chapter 13 bankruptcy.
A lot of people tend to think this decision is based on how much money they have but there are actually several deciding factors involved in this process.
If your income exceeds the median income level in your state, then you will have to file under Chapter 13 instead of Chapter 7.
Also, filing under 7 requires that all of one’s non-exempt assets be completely exhausted before any debts are forgiven. In other words, if you have a small amount of money but a lot of property, then 7 is probably better for you.
If your income level doesn’t exceed the median in your state, and all your property can be exempted under Chapter 7, then filing under Chapter 13 might be a better option immediately following the bankruptcy.
This allows one to reorganize their finances by creating a repayment plan that will hopefully provide enough income for creditors to accept some form of payment after receiving what they’re owed through the court process.
Sometimes this is done with the intent to keep one’s home or car (depending on how much equity they have in it). The downside here though is that you will have to deal with your creditors off and on for the next 3-5 years.
There are also other things you should know about before deciding which type of bankruptcy to file under. If there is a chance that you might want to keep any property, then it must be exempt under your state’s laws – otherwise, it can’t be kept.
Also, if there are family members who are willing co-signers on credit accounts or loans, then having them file too will help reduce what you owe.
You may even ask friends and family to cosign on documents so that you won’t incur late fees and penalties while filing.
This increases one’s chances at keeping property such as cars or homes because the creditor knows they will probably be getting paid even if it takes a while for the case to be filed.
Once you have decided whether or not to file under Chapter 7 or 13, and what property is exempt based on your state’s laws, then you will need to decide how much bankruptcy is enough.
First off, deciding to file bankruptcy means that you are done paying anything owed through bills or debts incurred before filing.
This includes credit cards, overdraft fees, personal loans, etc… Even student loans can be discharged in some cases, but this varies from state to state as well.
If there are any assets that you want to keep (i.e., home/car), then these should be exempted by your attorney during the process of filing because they are not part of what you owe.
The bankruptcy process can be confusing and intimidating at first, but it shouldn’t take too long for anyone to get used to the idea.
There are very strict guidelines that one has to follow throughout this process and if they don’t follow them then their case may not even make it through the entire court process. This is why you should know what you want from your attorney before beginning.
You also need to decide how much bankruptcy is enough before beginning because you don’t want to start a case and find out later on that filing under Chapter 7 would have been best for your situation.
Discuss your options with one of our bankruptcy lawyers today! To discuss with an experienced attorney, call us at 801-285-0980.
At Blue Bee Bankruptcy, our lawyers are highly experienced in the various filing options.
More importantly, we understand that each case we receive is unique and each client has different needs and goals. We will discuss these signs with you and decide the best route to take.
We strive to help our clients rebuild their lives and take steps toward a better financial future through filing.
If you’re dealing with the potential of bankruptcy, give us a call. Our team will work to help you by reviewing all of the options our firm has available. We will ensure you’ll get the best possible outcome for your situation.
Get in touch today so we can start working on either halting bankruptcies or preventing them from taking place altogether!
Contact Us Today For Help! You can schedule your free consultation online or call us at (801) 285-098.