Working Through the Bankruptcy Process with Help from an Attorney
Posted by wrongfuldeathinfo, 12/02/2017 11:12 am
Financial problems have a way of creeping up on even responsible people, often while gathering momentum along the way. A person who might have been responsibly repaying debts for years can stumble into trouble and suddenly find the associated obligations snowballing out of control.
When issues like these arise, consulting with a bankruptcy attorney will often be the best way of resolving them. Many who do so, for example, discover that a process known as chapter 7 bankruptcy can provide them with a fresh start and the ability to get back on track.
A Complex but Important Process Can Lead to Welcome Relief
While some individuals succeed in obtaining this form of relief for themselves on their own, the odds are considerably higher for those who work with an attorney. In many jurisdictions, in fact, those who are represented by attorneys are statistically more likely to emerge from the chapter 7 bankruptcy process successfully than those who are not.
Even so, understanding how the process works can be helpful in any case. The most important early steps include:
Detail assets. A debtor who files for bankruptcy will be expected to provide the court with a complete reckoning of all personally owned assets. From particularly valuable types of property like real estate to personal possessions, the court will need to be able to accurately asses the worth of everything an individual owns.
List liabilities. Likewise will a debtor also be required to submit a complete schedule of outstanding debts. This listing must include both the details of the creditors in question and the terms and amounts of the corresponding debts in order to enable the court to fully assess the debtor's situation.
Provide a statement of income. In addition to these static figures, the court will also look at how a debtor's current and recent levels of income impact the overall picture. Debtors whose income numbers are well above local averages, for example, may be forced to rebut a presumption of ineligibility for bankruptcy protection in order to have their debts discharged.
Describe legal agreements. Finally, debtors will also be expected to reveal to the court any contracts, leases, or other legal agreements to which they are currently party. Once again, the court will assess these details when deciding whether the individual qualifies for bankruptcy protection.
Informed Assistance Always Proves Its Value
With these steps covering only the very basics of the bankruptcy process, it might be clear that most debtors will do well to seek out help. Those who do so end up being much more likely to obtain the relief they seek.