How to File for Bankruptcy

How to File for Bankruptcy

Making the decision to file for bankruptcy is not usually an easy one. After all, when you file for bankruptcy, you stand to lose your credit, some of your assets, and, perhaps the hardest loss for most people, your self-respect. However, filing for bankruptcy doesn’t have to be a painful process. If you live in the state of California, start by finding a good California bankruptcy attorney. Rather than attempting to file for bankruptcy without legal support, find a California bankruptcy lawyer who can walk you through the process of bankruptcy. Finding legal help will lead to the best possible outcome to your financial woes.

Types of Bankruptcy

Before you file for bankruptcy, you should check to see if you qualify to file for a Chapter 7 bankruptcy, or if you have to take the less-desirable Chapter 13 bankruptcy route.

In a Chapter 7 bankruptcy, a decent bankruptcy lawyer in California can get the vast majority of your debts completely discharged. “Discharged” means that you are doing not got to pay another cent on these debts. A bankruptcy attorney in California can help you determine if you qualify to file for bankruptcy under Chapter 7.

Bankruptcy is certainly not the end of the world, and a decent bankruptcy lawyer in California can get the vast majority of your debts completely discharged.

The Bankruptcy Process

Once you have found a qualified bankruptcy attorney in California, you are ready to begin the process of filing for bankruptcy. To file for bankruptcy, you will first meet with your lawyer to discuss which type of bankruptcy you’ll be pursuing, as well as any questions you might have.

Once you have determined which type of bankruptcy you qualify for, your bankruptcy attorney will file the necessary paperwork. You will be notified by mail of a “341 meeting”, or a meeting between you and a court-appointed trustee representing your creditors. The trustee will decide if you have assets that can be liquidated to pay for your debts, or if your assets are exempt from liquidation. Assets you have that are non-exempt will be sold in order to pay your creditors.

If the creditors are unhappy with the agreement that you, your lawyer, and the trustee come to regarding your debts, they can file a lawsuit to try to get more of the debt repaid. The deadline for your creditors to file such a lawsuit is sixty days after your 341 meeting. If there are no such objections within sixty days, you will receive a notice of the debts that were discharged. If you filed for a Chapter 13 bankruptcy, you will receive this notice one to two months after your final payment on the court-appointed payment plan has been made.

When job loss, medical bills, or other financial tragedies strike, you should know that filing for bankruptcy might offer you a second chance. Furthermore, although bankruptcy will definitely damage your credit, even this consequence of bankruptcy can be rectified fairly swiftly.

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