Preparing to File for Bankruptcy

By |2017-09-23T21:45:04+00:00August 28th, 2014|Bankruptcy|

Have you gotten into a difficult financial situation? If so, bankruptcy might be an option to relieve your burden and help you get on a path to financial stability. If you are considering filing bankruptcy, then a bankruptcy attorney at Brent George Law can help you. Here’s what you need to know to prepare.

Is Bankruptcy the Best Option?

Before you decide to file, it is a good idea to evaluate your options. You might be able to achieve financial security with the help of refinancing, credit counseling, or debt consolidation. If these options will not relieve your financial pressure, then bankruptcy is probably the best option.

Hire an Attorney

Once you have determined that debt consolidation is not going to resolve your problems, it is a good idea to hire a bankruptcy attorney. Brent George Law can help you navigate the complex filing process so that you do not make errors. This will ensure that your case gets the attention it deserves.

Chapter 7 or Chapter 13

There are two types of bankruptcy – chapter 7 and chapter 13. Most people prefer to file chapter 7 because it completely relieves their debt. This means that you will not have to pay back anything that you owe. Also, you might be able to keep property that is protected if you can keep making payments on it. If you have property that is nonexempt, you will have to return it to your creditors.

When you file chapter 13, you usually set up a repayment plan to your creditors. The average time period to pay back each creditor is three to five years. You can usually keep larger assets like cars and homes as long as your continue to make payments. In a lot of situations, individuals are forced to file chapter 13 due to the “means” test.

Undergo Credit Counseling

Even if you are planning to file, by law you are required to attend credit counseling before you initiate the process. This counseling is supposed to provide you with alternatives to bankruptcy and administer the “means” test.

For more information on filing for bankruptcy, contact Brent George Law today. We offer a free initial consultation so come by the office today.