Law Firm In Utah - Basic Steps For Filing Bankruptcy
Law firm in Utah : Now the people are eager to learn the ways for filing bankruptcy
, they often search online and offline for getting more information on the basic steps from paperwork to discharge. Credit card companies and other creditors are not helping the debtor during bankruptcy proceedings. They are in the process of recovering the money back. Here are the basic steps of how to file bankruptcy.
Step 1: Bankruptcy discharge will stay on a credit report up to 10 years. In this period, the credit scores will be lower for making sure with no other option aside from bankruptcy is a crucial step in filing. Credit that is damaged by late payments or no payments will not be harmed drastically by discharge however.
Step 2: Two common types of bankruptcy are there one is Chapter 7 and the other is Chapter 13. Chapter 7 bankruptcy liquidates all assets and relieves debt completely. In these proceedings some property will be salvaged with the help of a bankruptcy professional. Chapter 13 places all debts on a repayment plan. The debtor will need to list all bills so complete honesty is essential.
Step 3: Many people feel they can attempt to file all paperwork on their own, deadlines, meetings with creditors and repayment options are what attorneys are trained to handle. The best option is search out professional help before filing.
Step 4: In the first meeting with a lawyer, a means test will be taken. The means test will be reported to the attorney as a basic judgment in the chapter 7 bankruptcy claim which is acceptable.
Step 5: Fees associated with filing bankruptcy will differ for every state. Some lawyers allow for payments on court filing fees and legal fees. All legal fees should be paid in full before the proceedings started as a lawyer cannot be a creditor in a bankruptcy case.
Step 6: Main benefit on filing an attorney aided bankruptcy is the automatic stay. When a lawyer handling the case, creditors cannot call about any debts once they have been informed about the bankruptcy and the lawyers contact information.
Step 7: Once the creditors have met and a 60 day waiting period for challenges from creditors has passed, the bankruptcy will be discharged.
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