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Filing for bankruptcy is a great way to get your finances in order. It can be difficult to navigate the bankruptcy process on your own, as bankruptcy involves legal issues. Although you can file the case yourself, experts recommend that you hire a bankruptcy attorney in Pasadena to help you.
What Are the Different Types of Bankruptcy?
Six types of bankruptcy are defined by the United States Bankruptcy Code. However, individuals often file for bankruptcy under either Chapter 7 or Chapter 13.
Chapter 7 ( Liquidation Bankruptcy )
This is a way to wipe out your debts. This chapter is for those who are unable to pay their monthly debt payments. A Chapter 7 case sees a court-appointed trustee liquidate your assets and distribute the proceeds to creditors. You may be exempt from some assets, such as your vehicle or household furniture. After Chapter 7 is completed, you are free from all debts.
A Chapter 13 Bankruptcy ( Wage Earner, or Repayment Plan )
The court approves a plan that allows you to pay off your debts over a three-to-five-year period. Once these debts have been paid, you are no longer responsible. This type of bankruptcy can allow you to keep property you might lose in Chapter 7, such as a house in foreclosure. You must pay all your mortgage payments in full during the Chapter 13 plan.
What is a Bankruptcy Attorney?
A bankruptcy lawyer is a specialist in providing legal advice to clients about bankruptcy. They also prepare legal documents and represent the client in court.
A lawyer is your guide throughout the bankruptcy process. They can help you with matters like:
- How to file for bankruptcy.
- What type of bankruptcy should I file
- How bankruptcy works
- What court-provided forms must be filled out
- What types of debts are possible to reduce or eliminate
- How long you will be able to keep your car, home, and other property after the bankruptcy case is over
If you are facing financial problems and contemplating filing for bankruptcy. It’s important to consult with experienced bankruptcy attorneys. These professionals can help you not only navigate the complicated legal system but will also protect your rights throughout the process. Remember that the role of our bankruptcy attorney in Pasadena California is to help you navigate the right way of bankruptcy
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What to Expect From Our Bankruptcy Attorney?
Here are some things to look for if you choose to hire us:
- A written agreement: This agreement between you and your lawyer will probably include an overview of the work done by the lawyer.
- Payment arrangements: For instance, will the lawyer charge an hourly fee or a flat rate? What are the fees?
- Handling your case: We’ll discuss how your lawyer is handling your case.
- A contract: You will agree on how often you receive updates from the lawyer about your case.
- Complete list of documents: Your lawyer should give you a complete list.
How to File for Bankruptcy Without a Lawyer
You can file bankruptcy online without the help of a lawyer. Here’s how:
Prepare
Before you do anything else, it is important to familiarize yourself first with the Bankruptcy Code as well as the federal rules regarding bankruptcy procedures. As a bankruptcy attorney, the federal court will expect you to comply with all bankruptcy rules and procedures. Not to be overlooked, the bankruptcy code as well as federal rules were written in language that is familiar to judges and lawyers but not to the average person.
Select the Type of Bankruptcy You Wish to File
Next, choose the type of bankruptcy that you want to file. There are two main options for individuals: Chapter 7 (liquidation bankruptcy), and Chapter 13 (wage earner or repayment plan). The next step is to determine which bankruptcy court is appropriate for your bankruptcy filing. Bankruptcy cases are handled by 94 federal judicial districts across the nation.
Get Credit Counseling
Remember that you must receive credit counseling from an approved provider to file bankruptcy. This must be completed within 180 days of filing for bankruptcy. After you have completed the credit counseling session, you will receive a certificate which you need to submit with your bankruptcy filing.
Complete the Bankruptcy Forms
After you have decided on the type of bankruptcy you want to file, you will need to fill out an official form 101 (Official Document). This is also known as a Voluntary Petition for Individuals Filing For Bankruptcy. This 8-page form requires information such as your name and address. It also asks you for dollar estimates of your assets and liabilities (debts) and what type of debt you have.
If you are filing for Chapter 7 bankruptcy, you will need to submit additional forms. You must submit another set of documents within 14 days after filing. These forms ask for information such as a list of creditors, a listing of all your property, and a summary and breakdown of your income and expenses. You will also need to submit forms for Chapter 7 and Chapter 13 cases.
Meet with Creditors
Once your bankruptcy case is approved by the court, you will typically work with a court-appointed bankruptcy trustee. The bankruptcy judge assigned to your case will usually be the only contact you have with you. The only formal proceeding that you are required to attend in most cases is a meeting of creditors called a 341 Meeting. Remember that you cannot get legal advice from the bankruptcy judge or court employees.
Do Not Wait for a Discharge of Debts
The typical time it takes to file a Chapter 7 case is between four and six months from the moment you file bankruptcy to the day your debts are discharged. A Chapter 13 case can last up to five years, as you are getting rid of your debts via a repayment plan.
Bottom Line
It is a big decision to file for bankruptcy. A bankruptcy filing can remain on your credit report for up to seven years depending on the type. Consider whether you would prefer to work with a bankruptcy attorney in Pasadena at Tenina Law or if you are more comfortable handling the matter yourself. No matter which route you choose, Chapter 7 bankruptcy or Chapter 13 bankruptcy can help you get a fresh start with managing your money.
