Bankruptcy is usually an unfamiliar topic to most people, until they find themselves in debt that has become too difficult to keep up with. Let me give you a brief overview of the basics of bankruptcy so that you can feel more confident going into this process and have a solid understanding.
Know Who’s Involved
It’s a good idea to familiarize yourself with the roles of the people involved in bankruptcy:
- Debtor – This is the person who is filing bankruptcy due to overwhelming debt.
- Creditor – The companies or people who are owed money in a bankruptcy case are called Creditors.
- Attorney – While you can file without an attorney, it’s best to hire a professional lawyer who is familiar with bankruptcy law and proceedings.
- Trustee – This is the person who has been appointed by the court to oversee the bankruptcy. They are responsible for ensuring that all your information is accurate and complete and that the rules of your state are followed.
Know the Process
I’m here to walk you through the entire bankruptcy process and to make sure you understand your roles and responsibilities. The first thing we’ll do is discuss your situation and make sure that you have explored other options, such as cutting expenses and negotiating with creditors. Together, we’ll choose the best type of bankruptcy for you. I’ll give you a worksheet to list all your assets, debts, income, and property and a checklist to make sure you haven’t missed any supporting documentation. I’ll also give you a list of providers who offer the Pre-Filing Credit Counseling Class, which you’ll need to complete before we can file your case. This simple and affordable class can be completed online and will help you get a better look at your overall financial situation. After you’ve completed this class, you can give me a copy of your completion certificate and all your documentation, and we’ll get your case filed. As soon as you file, the “automatic stay” goes into effect. This means your creditors can no longer attempt to collect your debt, so if they call, just give them your case number and my contact information. Soon after filing, we’ll attend your court date together, and then you can complete your final online class, the Post-Filing Debtor Education. If you’re filing a Chapter 13, you’ll soon start paying on your three to five year repayment plan, which will be followed by the discharge of most of your debt. If you’ve chosen a Chapter 7, within two months, your debt will be discharged.
Know How to Recover
Finishing your bankruptcy is a huge accomplishment that took time, dedication, and hard work. So once your case is settled, take a moment to celebrate! This is also the perfect opportunity to make some plans for the future, now that you’re not dragged down by debt. You’ve already made a budget during your bankruptcy education, and now comes the discipline of sticking to that budget. Look at your expenses and see if you can save more money for your retirement, as well. You also might want to think about applying for a small credit card. If you make purchases that can be paid off completely, on time each month, your credit score will improve. This is the best way to rebuild your credit and prepare for future large purchases such as a home or car.
Contact Me For More Information
We are here to help as you strive toward financial freedom. We’re experienced and have up-to-date knowledge about all the aspects of bankruptcy law. Don’t feel like you have to navigate the system alone. We’re here to take your call! Contact us today to get started. Click here if you need a Eugene bankruptcy attorney , or check here for our other Oregon and Washington locations.