There is nothing that feels more discouraging than being unable to stay soluble and owing more debt than you can repay. However, the law allows you to file for bankruptcy and get some sort of debt relief. While most people view filing bankruptcy as a quick way out of debt, it is important to get the full legal ramifications and the future effects of the decision before you settle on it. Here are some of the reasons you should not file for bankruptcy without the help of a Bankruptcy Attorney in Nassau County NY.
Preparing to file
Most people do not understand the simple fact that the process of filing for bankruptcy is not a one-day decision. For instance, before filing for a chapter 13, the judge will expect you to have attended a credit counseling 6 months before. This means that you need time to get ready for the process. During this time, you should be consulting with a lawyer to:
- Go over all your financiers and determine the amount of debt you owe.
- Use the relationship between the income and assets with the debt that you owe to determine how long it would take to repay the debt.
- To assess your financial situation and decide on the most appropriate form of debt relief for you. The most common options here include chapter 7, chapter 11 and chapter 13.
These are the preparations that will need the assistance of an attorney.
Filing for bankruptcy
The second step is filing for bankruptcy. The process involves a lot of paperwork. Small mistakes in the paperwork may cost you the whole process and unfortunately, if an application is rejected, you would have to wait 6 months to get another chance. The lawyer will help you with the entire paperwork and ensure that that you give clear and consistent information.
After the ruling
If the bankruptcy plea is accepted, the court will order an automatic stay on the exempt personal property. The court proceeding will be set up. You will be appointed a bankruptcy trustee. This is the person that will help sell your non-exempt property and distribute the money to debtors.
A Bankruptcy Attorney in Nassau County NY will assist you with the process of filing up until the point when you are declared debt free. Click here to learn more.
