Filing for bankruptcy takes a long process and is not just as simple as submitting all necessary documents. There are procedures to be followed and the process can last years until granted of the petition. But no matter how long the process may take, it starts with the first step and series of steps to follow to reach the end.
The first thing you need to do when planning to file for bankruptcy is to look for an attorney. Chapter 11 Bankruptcy Laws requires this since those who qualify under this category involves huge amount of debts from corporations and partnerships. Though not required for individuals filing under Chapter 7 and Chapter 13, it is still advised to get an attorney to make the process more bearable.
After looking for an attorney, the next step is to discuss the debt payment plans with your attorney. Chapter 13 Bankruptcy Laws requires applicants to come up with payment plan on how they will repay a portion of the debt. You must list all debts and not miss out one, even the slightest detail because it may lead you to disqualification. Aside from Chapter 13, and individual can also file under Chapter 7 as long as you are qualified. The difference between the two is that filing under Chapter 13 protects the assets of the applicants while the case is processed while Chapter 7 filing may require an individual to sell assets not exempted under Chapter 7 bankruptcy Laws. However, there are instances that an applicant who files under Chapter 7 may walk away of the debt without paying for anything or losing any asset.
The processing time takes several months or even years to finalize. During this period, creditors and debtors are not allowed to communicate with each other. Also, the debtor gets to secure all properties from repossession. Once you get approved of the petition, you eliminate the debt based on the terms agreed upon.
