6 Steps to Filing for Bankruptcy

6 STEPS TO FILING FOR BANKRUPTCY We've outlined the basic process of filing bankruptcy, but first, let's clear up a few nagging misconceptions. Bankruptcy is for losers. FALSE: It can be a tough pill to swallow, but this law was put into place for good people who are going through a rough time. Keep in mind, bankruptcy is not a moral or ethical decision, it is a financial decision. a You're going to lose everything & never be able to purchase a home again! b FALSE: You're not going to lose everything that you own, and in fact, you can start rebuilding your credit as soon as your þankruptcy is discharged. Filing for bankruptcy is simple and anyone can do it. C FALSE: Filing without a lawyer is dangerous, because creditors often seek to take advantage of unrepresented consumers. You'll be ok with an experienced attorney on your side. Get a Lawyer If you can't afford a lawyer right now, save and wait until you can, it will be well worth it. You and your lawyer will go over your "case" to determine if you can file bankruptcy and under which Chapter. Generally, these questions relate to assets, liabilities, income and expenses. Step 1 Pre-Filing Credit Counseling Before filing, you'll have to obtain a certificate from a credit counselor specifically for bankruptcy, your lawyer will direct you to the appropriate counselor. Generally this process takes only about 45 minutes online or on the phone (it's mainly a lecture about budgeting). Once complete, the certificate will be emailed to your lawyer and you're done! Step 2 Filing Once your bankruptcy case is filed, you should refer all creditors to your bankruptcy lawyer's office, once he or she has been retained. Your lawyer's office will then be able to speak on your behalf (which means no more annoying calls). Once your bankruptcy lawyer has filed your case, the "automatic stay" goes into effect. This means that NO creditor can legally contact you about your debt. Step 3 Post-Filing Credit Counseling After your attorney files your bankruptcy you will need to get post-filing credit counseling. Again, you can do this easily online for a small fee. You will need to provide proof of this counseling, usually in the form of a printed certificate upon completing the credit-counseling course.t Step 4 {Filed II Meeting This meeting allows the trustee to ensure that you have given truthful answers on your bankruptcy pétition, and that you understand and agree to filing for bankruptcy. Your lawyer will be there to help you understand the bankruptcy Step 5 procedure. Once you are sworn in at the meeting, you will answer questions that are recorded. The meeting goes very quickly in most cases and can last a fèw minutes. Discharge From Your Debts The final step in your bankruptcy is to receive a legal discharge from your debts. A discharge means that you have no further obligation to repay the discharged debt, and that your creditors can never collect the debt from you. Six months after filing for bankruptcy you. receive the discharge, and you get your fresh Step 6 start! Ready to File? Let Us Assist You. At McFarlin LLP, we understand that bankruptcy can be a difficult decision for most people to come to. If you are not sure if filing for bankruptcy is right for you, don't worry. We offer free consultation to prospective clients. Let us give you the best legal advice we can to help guide you to your best option. Call today (888) 728 0044. See more at: http://mcfarlinlaw.com/bankruptcy/how-to-file-bankruptcy/ Disclaimer: This infographic was not intended to give legal advice. Only a bankruptcy lawyer can give you legal advice on these matters. McFarlin 4 Park Plaza Suite 1025 Irvine, CA 92614 Phone: (949) 544-2640 Fax: (949) 336-7612 http://mcfarlinlaw.com/ LLP кхXXXXXX XXXXXX XXXXXX