A Bankruptcy Attorney Can Guide You Through Your Bankruptcy Petition and Court Proceedings
The legal system is complicated, and a bankruptcy attorney can be your advocate, helping you to navigate through it. Regardless of why you are going to court, the court system has set rules that must be followed. For example, in a bankruptcy specific documents need to be submitted by certain dates or the case can be thrown out. Working with a professional lawyer will help your case to go through smoothly and without delay.
When you file, you will be required to attend the 341a meeting of the creditors. In this meeting, your lawyer will present your case and your plan for repaying or liquidating debts. Your creditors have the right to attend the meeting and to present the case for why you should be obligated to pay more money towards paying off what you owe. Both sides will be heard, and the trustee will review the paperwork to make sure that what was filed is matching up with the information being presented. This can be an intimidating experience for many people, as when creditors do show up it is normally to argue or disagree with the plan. Having a lawyer with you will make the process go smoothly because we are able to speak on your behalf and respond to the creditors.
What debts can be included in my bankruptcy?
As a bankruptcy attorney, we can go over your debts and advise you as to which ones should be listed in your bankruptcy filing. Most of your debts, such as credit cards, personal loans, auto loans, mortgages, and lines of credit will typically be included. Student loans, child support, alimony, and some taxes will be left out unless the court determines otherwise. Creditors have the opportunity to argue that their debt should be excluded if they feel that the debt was given to you after you lied on an application or if you were willfully trying to cause them harm. This can be difficult to prove, but they may still try. You can also leave certain debts off of your petition. For example, you may want to leave out your mortgage so that you can continue making payments and stay in the home. If assets like your mortgage and auto loan are included, they can be sold by the creditor in order to pay off the debt associated with the property.
In each bankruptcy case, it is important for you and your bankruptcy attorney to lay out a clear plan of which debts you want to pay off and how you plan on paying them. The trustee needs to know how much money you make and what your disposable income is after paying for your living expenses. Living expenses need to include your basic bills like housing, utilities, phone, food, gas, and daycare. The disposable income that is left over should be able to be allocated towards monthly debt payments. If you are filing for a Chapter 7 liquidation bankruptcy, the trustee will also look at the value of the assets that are being liquidated and how they can be applied towards the debt that is owed. Your plan needs to be logical, clear, and fact based in order to give you the best chance of it getting approved. Your bankruptcy attorney can help to make that possible.