The Filing Process for Bankruptcy
Filing for bankruptcy is not as easy a task as one might think and there are various stages involved that can become as overwhelming as the debt you are under. You have made this decision so you no longer have to be overwhelmed and eventually may realize this is not something you can do on your own and choose to use a Los Angeles bankruptcy attorney to help you. This lawyer will work for you and walk you through the various bankruptcy stages so this stressful time can be a little less stressful.
The first stage of bankruptcy is the filing stage. This is when you, with the help of your Los Angeles bankruptcy lawyer, will gather all documents needs. This will include your own income information in the form of pay stubs, necessary bills, tax records and any secured and unsecured debts you owe. You will also file your petition during this stage. The legalese may be difficult to understand, but an experienced lawyer will be able to help you through it.
After the filing stage, you will then be required to attend what is called a 341 meeting if you are indeed eligible to declare bankruptcy. This is also known as a meeting of creditors and will be overseen by a trustee appointed by the court to administer the day to day workings of your case. The trustee is the person who decides what you need to liquidate and also how the portions of your debt that need to be paid back through this liquidation will be paid back. The basics of this will be decided in this meeting, which you will attend with your bankruptcy lawyer in Los Angeles.
The final stage of the bankruptcy process is the discharge stage. Depending on the type of bankruptcy you file, this will occur at different times. If you file Chapter 7 bankruptcy, the discharge can take place within a matter of months, as you have already liquidated certain possessions and had the trustee pay back a portion of your debt. If you file Chapter 13 bankruptcy, your discharge will take place once the payment plan arranged has been satisfied, usually within 3-5 years.
Do not let the various stages of bankruptcy you need to go through discourage you from the process. A good bankruptcy attorney in Los Angeles will be able to guide you through it all and make your fresh financial start easier than you imagined.