Navigate the Complex Bankruptcy Process with an Attorney
Declaring bankruptcy is like attempting to navigate a maze blindfolded. It's complicated and overwhelming and a single misstep can lead you to a dead end. Whether you're sinking under the weight of debt or trying to save your business, knowing the ABCs of bankruptcy can be a lifesaver. This article unravels the intricate web of bankruptcy laws and underscores how an experienced bankruptcy attorney can guide you in this complex journey in OKC.
The Several Types of Bankruptcy
Chapter 7: Also known as "Liquidation Bankruptcy," this allows you to wipe the slate clean by selling off non-exempt assets to pay creditors.
Chapter 11: Designed for businesses, this "Reorganization Bankruptcy" offers a chance to restructure your business and start fresh.
Chapter 13: Known as "Wage Earner's Bankruptcy," this enables individuals with regular income to formulate a repayment plan to settle their debts over three to five years.
Ascertain Whether You're Eligible for Bankruptcy
Passing a Means Test: A means test evaluates your income, expenses and general financial status to determine your eligibility for Chapter 7 or Chapter 13 bankruptcy.
Impacts of Previous Bankruptcy Filings: Your past can come back to haunt you. If you have filed for bankruptcy before, the timing of your previous filing might affect your current eligibility.
Complete Credit Counseling Session: A mandatory session with a credit counseling agency is required to file for bankruptcy. The agency will assess your financial situation and suggest potential alternatives to bankruptcy.
Sail through the Process with an Experienced Bankruptcy Attorney
Evaluating Your Financial Situation: Your bankruptcy attorney starts by comprehensively reviewing your financial situation. That involves analyzing your income, expenses, assets and liabilities. By doing so, they can determine the type of bankruptcy that is most beneficial for you. For example, if you have a stable income but are burdened by unmanageable debt, Chapter 13 could be more appropriate than Chapter 7, which may result in the loss of valuable assets.
Filing Petition to Court: Filing the bankruptcy petition is more than just filling out a few forms. The petition includes several schedules and statements that require meticulous detail. Missing out on a single line or providing incorrect information can lead to your case being dismissed or, worse, being charged with bankruptcy fraud. Your bankruptcy lawyer can prepare these documents flawlessly, ensuring your petition withstands scrutiny.
Representing Your Interests to Preserve Rights: Once you file the bankruptcy petition, the court initiates an "automatic stay," which temporarily halts all collection actions against you. Despite this, some creditors may attempt to circumvent the stay, leading to illegal actions like repossessions or foreclosures. An experienced bankruptcy attorney can help enforce the stay and represent you in court if necessary, preserving your rights at every turn.
Developing a Feasible Repayment Plan: In cases of Chapter 13 bankruptcy, your attorney will work with you to develop a realistic repayment plan. It is a delicate balancing act; the plan must meet the court's criteria and be acceptable to creditors. A skilled attorney will know how to negotiate these terms effectively, reducing the amount you have to pay back or extending the time frame for repayment.
Assisting in Discharging Your Debts: At the end of the bankruptcy process, the ultimate aim is to discharge your debts, relieving you from the obligation to repay them. However, not all debts are dischargeable. Your attorney will guide you through the legal intricacies to ensure as many debts as possible are discharged, thereby offering you a much-needed fresh start.
Take Control of Your Financial Future with Our Trusted Attorneys
If you're grappling with the labyrinth of bankruptcy, you don't have to walk the path alone. Reneau Law Group's experienced bankruptcy attorneys in OKC can guide you through each step, ensuring your journey to financial freedom is as smooth as possible. Get in touch with us today.
**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.