Believe it or not there are some things that you should not do before you file for Chapter 7 and 13 bankruptcy.  Finding debt relief in bankruptcy is not as simple as filing a few pieces of paper, appearing before a federal judge and whoosh all of your bills are gone.  There are a lot of considerations that go into the act of declaring bankruptcy and seeking relief from your debt.

One of the first steps to take when considering the different options available to you is to determine your totally debt.  When you are in a situation where you are experiencing stress financially, it may be tempting to do whatever you can to free yourself from that pressure.  However, bankruptcy discharge is a very serious, legal action therefore it is crucial that you understand what is going to happen before, during, and after bankruptcy.

Don’t Rush

Bankruptcy is a federally governed method of debt elimination.  There are limitations on how often you can file for bankruptcy.

• Chapter 7 bankruptcy discharge is something that can only be done once every eight years.
• Chapter 13 bankruptcy discharge is something that can only be done once every six years.

If you are considering bankruptcy due to medical debt but are still experiencing severe health issues it is probably important to wait until your health has stabilized before filing.  The last thing you want to do is to find yourself accumulating more and more debt after you have already discharged your initial debt. There are a number of problems that crop up when bankruptcy comes into view like unemployment, foreclosure, eviction, and car repossession.   It is important to file bankruptcy at a point when you know you are going to be able to get back on your feet once a discharge is granted.  The last thing you want is to have your debt cleared only to find yourself swimming in debt a year later when no relief can be given.

Don’t Wait Too Long

There are times however that bankruptcy can’t wait and that it is in your best interest to file for bankruptcy right away.  If a wage garnishing is in place, it is important to file sooner rather than later so that you have more money to pay bills.  Filing for bankruptcy in a timely manner is also important if a creditor has a lawsuit against you.  Your bankruptcy attorney will want to make sure to look at the complaint to see if it includes any allegations of fraud.  If it does, the matter will go into judgment and you likely won’t be able to wipe out this debt in bankruptcy.

A creditor that has won money in a judgement against you, the lien that accompanies it allows the creditor to take wages directly from your check, attach to your bank accounts, repo cars, and foreclose on your home in an effort to reclaim the money that is owed.  If you file for and receive a bankruptcy discharge before the creditor wins a case against you, filing bankruptcy will stop the lawsuit in its track and wipe out that debt as well.

Don’t Drain Retirements Account

Retirement funds are protected from bankruptcy.  It is important not to withdrawal funds from your retirement accounts in order to pay off debts.  Before taking money from any type of account that is labeled for retirement speak with a bankruptcy lawyer to figure out the best option for you.  Most often you will find that your attorney will recommend that you do not deplete your accounts to better your financial situation.

Don’t Provide Information That Is Inaccurate

It is crucial to be completely open when it comes to your bankruptcy paperwork.  You are required to provide accurate information on your paperwork including your assets, debt, income, expenses, and financial history.  Misrepresenting information could lead to penalty of perjury.

Don’t Add in New Debt or Move Assets

Any debt that is incurred seventy to ninety days before filing bankruptcy paperwork, unless it is a necessity, a creditor may object.  Debt within this time frame may be considered fraudulent. As a rule, don’t take out cash advances or use credit cards to buy luxury items.  It is also critical that you don’t try to hide or move assets for safekeeping before filing for bankruptcy.  If you have sold property to pay for expenses before declaring bankruptcy it will be important to document the way in which you spent the money to pay for necessities.

As with any legal procedure it is important that the rules are followed to prevent any sort of confusion when it comes to discharging your debt.

Bohikian Law Group specializes in bankruptcy services including chapter 7 and 13 bankruptcy.  More information can be found at http://bohikianlaw.com.

One of the ways that people get out from under an oppressive debt is through filing for chapter 7 or chapter 13 bankruptcy.  Having debt discharged through bankruptcy can offer many people a great sense of relief.  The process itself however can be quite daunting without hiring a proper bankruptcy lawyer helping your through the process and forms.  When you are seeking an attorney’s assistance with the bankruptcy it is important to find one that offers you: competence, sound legal advice, preparedness, and representation.

Competence

Bankruptcy cases can range from straightforward to utterly complex.  The attorney you hire to handle your bankruptcy should have the skills that you need to have your bankruptcy proceed properly.  Your bankruptcy’s difficulty will range depending on a number of elements including:

• The facts of your particular situation
• The chapter of bankruptcy you are filing: chapter 7 or 13
• The assets that will need to be sold
• The status of employment and business ownership
• The involvement of interested parties

Sound Legal Advice

Once you have established a relationship with a bankruptcy attorney a contract will be signed to specific the working agreement between you and your lawyer. This agreement will state what services you should expect that they will provide vs what you are to provide for yourself.  The first thing that your attorney will discuss with you is whether it is in your best interest to file for chapter 7, chapter 13, or another option.  This decision is based on what makes the most sense for you to achieve your financial goals. Your attorney should also brief you on what you can expect throughout the bankruptcy process along with the difficulties of your unique case.

Preparedness

Your attorney is in charge of making sure all of the paperwork that you need is filed and properly and within the timeline provided for your case.  You are required to disclose proper financial information to your attorney including: income, expenses, assets, and information pertaining to your debt.  Once this information has been received it will be processed and the two of you will review the information before it is filed.

You may be asked for more information by the court or the court’s trustee.  If you or your attorney fail to provide this information in a timely manner and you miss the deadline the following consequences may occur:

• Delay in your bankruptcy proceedings
• Dismissal of your case

Because of the serious nature of the consequences it is critical that the bankruptcy attorney you hire is diligent with paperwork and following required deadlines.

Representation

After the paperwork has been filed and the court has received everything it needs all debtors will be required to attend a hearing known as a 341 meeting of the creditors.  Depending on your case you or the bankruptcy attorney representing you may need to go to other hearings as well.  Your attorney will advise you when you meet with them on what type of hearings you will be required to attend.  Your bankruptcy lawyer should attend all hearings with you.  Some of these can include:

• Chapter 13 bankruptcy confirmation hearing
• Chapter 7 bankruptcy reaffirmation hearing
• Motion/objection hearings

Bohikian Law Group specializes in bankruptcy services including chapter 7 and 13 bankruptcy.  More information can be found at http://bohikianlaw.com.

When you are considering bankruptcy as an option to relieve your financial burdens the last thing you want to be worrying about is how much it is going to cost to hire an attorney and file the necessary paperwork.  After all, money is tight which is the reason you are contemplating this option in the first place.  In this installment we will discuss the fees involved with filing, hiring an attorney, and additional fees you may encounter.

Fees for Filing Bankruptcy

There are many bankruptcy options to choose from but the most popular being Chapter 7 and Chapter 13.   The filing fee for Chapter 7 is $335 and for Chapter 13 is $310.  There may also be a fee charged by the Bankruptcy Trustee which can range between $15 and $20 dollars.  Another fee you may need to cover is the cost for mandatory credit counseling and financial management classes.  These classes can cost upwards of $100 depending on where you are filing for bankruptcy and the options that are available.

Attorney Fees in Bankruptcy

Many people will unsuccessfully file for bankruptcy without the help of an attorney.  Paperwork often is incorrectly filed, the steps necessary are not taken, and many other hiccups plague individuals filing “pro se”, (without the help of an attorney).  The truth is that filing for bankruptcy successfully most often requires the help of a bankruptcy attorney.

Bankruptcy attorneys are responsible for setting their own fees.  On average bankruptcy attorneys charge $1,250 for their services.  This fee varies depending on where you are filing, the complexity of your litigation, your attorneys experience and reputation. The fees for filing Chapter 7 bankruptcy are often less than those found in filing for Chapter 13.  This is most likely due to the extra services that go into filing Chapter 13 such as setting up a repayment schedule and executing automatic payments.

This fee may seem like a lot at the moment.  It is to be assumed that your filing bankruptcy because you are lacking the ability to pay the debt.  When you take into consideration the average debt that is written off in bankruptcy is $15,000 that fee seems relatively reasonable as it takes a large debt down to pennies on the dollar.

Filing for bankruptcy isn’t an option that is easy for individuals to make.  It is one that should be made only after much research and contemplation.

Bohikian Law Group specializes in bankruptcy services including chapter 7 and 13 bankruptcy.  More information can be found at http://bohikianlaw.com.