Most people know that filing for bankruptcy is one way to prevent those you owe from going for your assets when you become insolvent. You can choose between chapters 7, 11, and 13 based on your situation. However, 7 and 13 are the commonly preferred alternatives. Many people think about 7 because it helps eliminate almost all debt. However, there are certain circumstances when it would be best to file for chapter 13. You will follow these steps when filing for it.
Putting the Files Together
The first step should be putting together the files you need. It is always best to work with a lawyer because they understand the process and documents needed. The most important ones include a credit report from the reporting agencies, pay stubs, and tax returns. They might ask you to provide proof of employment dating up to half a year before the filing date. Other crucial files include bank reports and valuation for all the real estate property in your name. They might also want you to include the loan statement. Your lawyer will offer you a comprehensive list of all the documents you should put together.
Doing a Debt Analysis
The other step in the process should be carrying out a complete debt analysis. You can make the process simple and fun. Get a notebook and list down everything you owe people. You can note the specific type of debt beside each document, with common ones including credit cards and student loans. A financial advisor can help you classify the loans into priority and non-priority. For example, a child support payment is a priority debt because the court cannot allow you to forgo payments.
Carrying Out a Survey of the Property
Petitioning is a process that involves handing over your assets and finances to a trustee. They are the ones to determine what they will sell off and settle your debts for you. Therefore, you should create a list of everything you own and its value. The lawyer will study the exemption law with you and determine what you can retain.
The lawyer will help you create a budget and take the financial counseling course. They will also help you fill out the petition forms, file them and pay the fees. They will help you keep up with the payment until you are through. With the help of a bankruptcy lawyer, you can follow through the rest of the steps to a meaningful conclusion.Share