The most common reason for hiring an attorney for bankruptcy is to have a plan formulated and made so that the matter is very clear. Bankruptcy, in its simplest form, means declaring yourself unable to pay your debts and then having to come up with a way of getting your finances back under control. If the creditor agrees to such a scheme, you can repay the remaining debt over a period of time and save yourself the headache of having to deal with it on your own.
This can all be in a matter of weeks or months when you choose to hire a lawyer’s professional opinion.
If your problems are more serious or represent a greater amount of money than you can reasonably afford to repay, a bankruptcy attorney may be required to get a waiver from your creditors.
At a court hearing, you will be granted permission to pay the rest of the debt over a certain period of time, usually up to 10 years. Once the waiver is in place, the attorney will draw up a financial plan for you that will show you how to meet your monthly obligations. This is the point at which you will need to be ready to submit your tax returns, make the purchases on your credit cards and make the small regular contributions to your savings account.
When all this has been completed, the trustee will then arrange for you to provide the same information to your creditors and allow you to make payments to your financial institution. At this point, the attorney will continue to work on the plan to create an acceptable payment plan.
The attorney will discuss your case with the lender as well as with you and other creditors. They will help to create a plan that is agreeable to both the trustee and your creditors.
The attorney will then go about finding someone to act as a negotiator between you and your creditors. The creditor will agree to such terms as you would like to clear your accounts. Once the paperwork has been filed, the attorney will send you the documents which detail all the legal papers involved in your bankruptcy. All documents need to be signed by the trustees to begin the process.
The trustee must be notified by the attorney of their intention to file a bankruptcy petition.
Then they must go through the steps of filing a petition for bankruptcy, setting up a bankruptcy court and setting a date for a hearing.
The final step is when a judge decides whether or not you should be declared bankrupt. Once that decision has been made, the trustee can begin to pay your creditors.
Once you have gone through the process and your accounts have been settled, it will take a very short period of time before you can even begin to make the payments. Once the paperwork has been signed and everything is properly arranged, your attorney will be ready to start planning your future.
- The attorney will also outline to you all the options available to you. You may wish to consider one of these options.
- One of the most important things to remember is that each person has to be responsible for his or her actions.
- For example, if you owe a large sum of money to different creditors, you might wish to consider going ahead with bankruptcy so that you do not have to deal with those creditors.