Bankruptcy Lawyers - How to start the bankruptcy processes

Bankruptcy is an option that many people consider when facing financial difficulties. It allows individuals to restructure their debts and avoid foreclosure on their home.

The first thing you need to know is that filing for bankruptcy is an extremely serious decision. You will have to make some very difficult decisions.
If you decide to file for bankruptcy, there are several steps involved. First, you must consult with a bankruptcy lawyer. This consultation should last at least 30 minutes. During this meeting, the attorney will explain the different options available to you. They will also discuss whether bankruptcy is right for you.


There are two main types of bankruptcy: Chapter 7 and Chapter 13.

Chapter 7 is known as liquidation bankruptcy. It allows you to discharge your debts through a court order. You will not receive any money back from creditors. However, you will no longer owe them anything. In addition, you will not need to pay taxes on any income earned after filing for bankruptcy.

Chapter 13 is known as repayment bankruptcy. It allows you repay some or all of your debt over a period of three to five years. After completing the plan, you will still owe some of your creditors. However, you do not have to pay taxes on any future earnings.

In Chapter 7, you will get rid of most of your debts by liquidating assets.

If you decide to file for Chapter 7 bankruptcy, you will need to complete an application with the U.S. Trustee’s office. This form will ask questions about your financial situation, such as how much you earn and how much you spend each month. Once you fill out the form, you will need to provide copies of your tax returns for the past two years.
You will also need to submit a list of your unsecured debts (those that aren’t secured by collateral). These include credit card bills, medical bills, student loans, and other personal loans. You will need to prove that you cannot afford to make payments on these debts. If you qualify for Chapter 7 bankruptcy, your case will be assigned to a trustee who will oversee the process. The trustee will review your documents and determine whether you should be granted a discharge. If so, he or she will prepare a final report that will be sent to the judge.
The judge will then issue a discharge order. This means that you won’t have to pay off your debts anymore. You will still need to continue making regular payments to your creditors.

In Chapter 13, you will pay off your debts over time.

After filing for bankruptcy, you will not be able to make new purchases without first getting approval from the court. You will also need permission to travel outside the country.

You may also qualify for debt consolidation or debt settlement programs.

If you are struggling with overwhelming debts, you may qualify for a debt consolidation program. This type of program allows you to pay off multiple loans into one loan at a lower interest rate. Debt settlement programs allow you to settle your debts for less than the full value of your total outstanding debt.

Why you need a bankruptcy lawyer

As mentioned above, Bankruptcy is a long and complicated process and needs to be filed accurately in order to achieve the best results. Choosing the right bankruptcy lawyer for you is essential to succeed in this process well and get the result you expected.

You can read our full article about how to choose the right  bankruptcy lawyer
Follow the guidelines in order to deal with your debt in the best way possible.

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