Do you want a lawyer to file for chapter?
It is quite unlikely that an ordinary person’s bankruptcy would be challenged at the creditors’ meeting. It’s the paperwork in general that stumbles people.
There are few things that make the concept of bankruptcy easier to understand. Almost everyone was there and you would think it would be very easy to explain. However, if the person you are explaining to is a liquidator, it may not be as easy as you think.
Documenting the fact that your pockets are empty and why is is key to a successful bankruptcy. While you don’t have to be represented by a lawyer when filing for bankruptcy, it is always a good idea.
The disadvantages of do-it-yourself bankruptcy
When a person represents himself in court, one speaks of Pro-Se. It is possible to file for bankruptcy. In this case, you don’t have to pay a lawyer to represent you. While this seems like an economical way to get things done, it can end up costing you more.
If you fill in your paperwork incorrectly, your bankruptcy may not go through and you may have to file again. The registration fee for a Chapter 7 in New York State is $ 338 and $ 310, respectively. If you file a Chapter 13, regardless of how dire your financial situation is, the court expects you to pay for it.
What are the steps to file for bankruptcy?
The first thing to do when filing for bankruptcy is to gather all of the required documents. For example, you might need bank statements, pay slips for your job, and your most recent tax return.
You want to collect documents about your liabilities. You’ll need credit card statements and a copy of the rental agreement or mortgage for your home. If you have a car loan, you’ll want to make a copy of it too.
While bankruptcy does not award student loans and government debt, if you owe money to the Internal Revenue Service or if you have unpaid loans for school, be sure to bring documentation with you.
You will then have to take a credit management class. New York State requires credit counseling for anyone filing for bankruptcy. If you think you need to take multiple courses for weeks, fear not, it only takes about an hour and there is only a small fee.
Application for bankruptcy; Image by Melinda Gimpel via Unsplash.com.
You will then have to fill out many forms with the state. There are over 20 forms, all of which contain many legal entities. These forms are the reason you need a lawyer. A bankruptcy attorney has years of experience filling out all the required documents.
You will be notified of your hearing by your trustee. A trustee reviews bankruptcy cases. You will need to send the trustee some of the paperwork that you have. You will also be expected to take a second class of credit management known as the bankruptcy class.
You then pay the registration fee and a hearing will be set. You will attend your creditors’ meeting and your bankruptcy will be settled.
It is quite unlikely that an ordinary person’s bankruptcy would be challenged at the creditors’ meeting. It’s the paperwork in general that stumbles people. Hiring a bankruptcy attorney may be expensive, but if you are able to get on with your life on time, it is all worth it.