Bankruptcy Court Tax Litigation Lawyers
Are you in debt? If yes, what is your plan on getting out of debt? Getting yourself an attorney is a surefire way of climbing out of the abyss. The attorney will prepare and file your bankruptcy petition and advise you on the bankruptcy chapter to apply for, whether 7,11 or 13.
Why Should You File for Bankruptcy When in Debt?
Filing for bankruptcy is not an easy decision to make; it requires planning and adequate legal help because it’s a life-changing decision. As hard as it may seem, filing for bankruptcy can help you to climb out of a financial crisis if done right. Some of the benefits include:
- You will save your home: if the equity stake is within the set threshold. If the stake falls within limits, your home will be safe from liquidation. Motor vehicles and household items will be exempted if they are within the limit.
- Your privacy is respected: bankruptcy filing is a private affair; you will not be required to disclose the choice to anybody. You maintain your respect while trying to get yourself out of financial trouble.
- You gain access to resources: There are plenty of resources for you if you file for bankruptcy; your community and online resources will help you through. Attorneys are the most vital; they will help you to prepare and file bankruptcy documents.
- You get a fresh start: when you successfully declare bankruptcy. You will be able to start your life on a clean slate with the financial burden on your shoulder. With the bleeding stopped, you can focus on building up your credit rating.
- You can acquire back your driver’s license: Unpaid debt from a Moto vehicle accident can result in the suspension of your driving license. When you declare bankruptcy, the debts will be written off, leading to the reinstation of your driving license.
- Creditors will stop filing legal proceedings against you: When in debt, your phone may be blowing up due to numerous calls made by creditors. Legal action will take a toll on you. Once your bankruptcy petition is successful, a stay-on notice is issued to creditors barring them from contacting you.
Chapter 7 Bankruptcy Filing
- Preparation
Engage the help of your attorney when filing the bankruptcy document. Collect information about all your debts and creditors. Key them into the chapter 7 bankruptcy form using the proper filing format. The forms contain some instructions and terms that may be confusing if you do not have a legal background. That is where a seasoned attorney comes in handy.
- Filing
After finishing filing your petition, sign it form. Your attorney will also sign to pronounce that the preparations are complete. File the petition electronically while your attorney retains the original. Ensure you are served with a hard copy, and an electronic notification is sent to your creditors. Through this, the creditors cannot file legal proceedings against you or contact you.
- First Meeting
50-60 days after filing your petition, a meeting with a court-appointed trustee is set. The trustee represents your creditors; he or she will mull over your case to see whether any of your assets can settle some of the debt. Once you file a chapter 7 bankruptcy petition, all your assets fall under protection making this a formality. On rare occasions, exceptions may arise, and your attorney must step in.
- Discharge of Debt
If your case transitions normally, after 120 days since filing for bankruptcy, the court will grant you a discharge that frees you from all your debt. You can start afresh once the process is complete.
Chapter 11 Bankruptcy Filing
In the recent tough economic times, your business may go under bludgeoning debt. To save your drowning business, you can opt to file a chapter 11 bankruptcy petition. Through this, to will keep your business afloat while plotting on how to pay the debt. Some of the benefits are:
- It enables your business to continue operating: The petition will allow you to reorganize your finances while restructuring the business’s debt.
- It protects the company assets: Once the petition is successful, company assets will be immune to sale and liquidation: The business gains time to restructure debt and may transfer corporate ownership to creditors in some cases.
- It gives corporate debtors time to offset their debt: Chapter 11 allows a debtor to spread the debts over some time.
- It takes care of all corporate debt: Every debt owed will be discharged under chapter 11. The business can list all its debts.
Chapter 13 Bankruptcy Filing
You may be ineligible to file for chapter 7 bankruptcy due to having high asset equity or income, chapter 13 bankruptcy form may aid you. Commonly referred to as reorganization bankruptcy, it is effective for homeowners facing repossession and foreclosure.
To be considered for the chapter, you must meet the monthly post-bankruptcy payment while supporting your current lifestyle. It would help if you kept in mind individual debt cannot surpass the set statutory limit.
You must file the following documents to get a chapter 13 form:
- List of your total liabilities and assets
- Schedule of your living costs and monthly income
- Financial statement
- List of all your properties
- List of monthly expenses
- Credit counseling certificate
- Total debt owed
- Monthly living costs