We will help you avoid the potential pitfalls in the bankruptcy process.
While the reasons and situations leading to considering filing for bankruptcy can vary widely, the bankruptcy process is similar in nature for most people. That doesn’t mean it is a simple task, as there are many pitfalls to be navigated if you are to successfully get your debts discharged. At Tarantino Law, PLLC, our law office serves those in the Mooresville, North Carolina who need to understand and get through the bankruptcy process. Here are the main steps involved:
- Meet with a bankruptcy attorney- Filing for bankruptcy isn’t something you should try to do on your own. The first step is a consultation where you’ll get important information about how bankruptcy works, the different types of bankruptcy, and what to expect from the bankruptcy process.
- Go through credit counseling- Federal bankruptcy code requires all those going through the bankruptcy process to obtain credit counseling from a qualified agency within 180 days prior to filing for bankruptcy. The purpose for this step is to learn how to better manage credit and your finances so that you can have a sound financial future.
- Complete paperwork- You will need to provide documentation about your assets, debts, income, monthly household expenses, and other financial information. Be prepared to submit such proof as pay stubs and tax returns. We will let you know of any extra items you need due to your situation and the type of bankruptcy you are filing for. We’ll also handle preparing the petition that will need to be filed.
- A trustee is assigned to your case- The trustee oversees your case and handles a variety of tasks based on the type of bankruptcy you are filing, such as liquidating nonexempt assets, distributing any funds to creditors, verifying information you’ve submitted, and potentially requesting additional documents.
- Meeting of creditors- A meeting will be scheduled that gives creditors the opportunity to ask you questions. You will be under oath. We will prepare you for this meeting. Every meeting is different in that some have no creditors show up at all and others have several.
- Confirmation of eligibility- At this point, the court will utilize the information provided and make a determination of whether you are eligible for bankruptcy protection.
- Nonexempt property liquidation or repayment plan confirmation- Your trustee will have determined which of your assets are worth liquidating if you are filing for Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, at this stage the court determines if your proposed repayment plan is agreeable.
- Debts discharged- Remaining debts after payment to creditors via liquidation or a repayment plan are discharged.
If you would like to know more about the bankruptcy process, reach out to us to schedule a consultation. We will be happy to go over the bankruptcy basics and advise you about Chapter 7, Chapter 11, Chapter 13, and other types of bankruptcy. Call today to learn more.