How Do Filing Bankruptcy Work

After filing your bankruptcy forms you will need to complete a debtor education course from an approved credit counseling agency.

How do filing bankruptcy work. If you need to borrow after bankruptcy your only choice may be a secured loan which requires you to put up some form of collateral. Although a bankruptcy stays on your record for years the time to complete the bankruptcy process under chapter 7 from filing to relief from debt takes only about 3 6 months. Under this type of bankruptcy you ll be required to allow a federal court trustee to supervise the sale of any assets that aren t exempt cars work related tools and basic household furnishings may. Legal counsel is not a requirement for individuals filing for bankruptcy but you are taking a serious risk if represent yourself.

Advantages of chapter 7. An individual cannot file under chapter 13 or any other chapter if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor s willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property. How does filing for bankruptcy work. Understanding federal and state bankruptcy laws and knowing which ones apply to your case is essential.

Chapter 7 bankruptcy also known as straight bankruptcy is what most people probably think of when they re considering filing for bankruptcy. Filing for bankruptcy is complicated and the information provided here is not exhaustive. Disadvantages of chapter 7. You can learn more about what bankruptcy can do for you by speaking with a local bankruptcy lawyer or for a more in depth explanation of both chapter 7 and chapter 13 bankruptcy see the new bankruptcy by attorney cara o neill.

It can be completed online or by phone and typically takes at least 2 hours and costs between 10 50 unless you re eligible for a waiver. You meet with one of our trustees for a free confidential assessment of your financial situation. Misunderstandings of the law or making mistakes in the process can affect your rights. Bankruptcy is regulated and sanctions by the canadian federal government and can only be filed by licensed insolvency trustees like our professionals at fontaine associates.

Consumers who file for bankruptcy can inflict serious damage to their credit. The following is a list of ways your lawyer can help you with your case. Bankruptcy will ruin your credit for some time to come. If your income is equal to or less than the median income you can file for chapter 7.

Here is how it works. To determine this a judge will first compare your income over the last six months with the median income in your state for a family of equal size. Court employees and bankruptcy judges are prohibited by law from offering legal advice. The first thing the bankruptcy team will do is assess your ability to pay.

Take bankruptcy course 2. A chapter 7 bankruptcy can remain on your credit report for up to 10 years.