Bankruptcy laws: How to apply for bankruptcy

The bankruptcy application helps people with financial difficulties regain control of their finances. The process can be expensive, but for those who want to get financial aid it is a well spent money. However, it is possible that some people do not have the necessary resources to pay the corresponding costs and wish to obtain cheaper alternatives.

Others prefer to go through financial problems or find alternatives to deal with their debts. For those who try to protect their home or other important assets, applying for bankruptcy, even when they must represent themselves, seems to be the only option. But there are some ways to apply for bankruptcy that allows the person to be represented by a legal professional and minimize the costs of the application.

 

Bankruptcy application process

Bankruptcy application process

If a person files a bankruptcy petition in accordance with Chapter 7 or Chapter 13 of the United States Bankruptcy and Bankruptcy Law, he or she must file the application with a bankruptcy court. The process can be very long and confusing; Therefore, it is recommended to have legal advice. In the case of an application under Chapter 7, the applicant requests to be exempted from all corresponding financial obligations.

There are several forms and documents that must be completed and presented in a timely manner. Otherwise, the decision of the court will be unfavorable to the granting of the bankruptcy order. The required documents include an examination of the available economic means (means test), a list of all the known creditors, a detailed list of all the own assets and the corresponding values, the records and balances of bank accounts, and any other financial information.

This information is also needed for the bankruptcy application under Chapter 13, but the applicant must also include the proposed payment plan. This is the amount that the applicant must pay to the trustee for a certain period until it is considered that the debt has been canceled. A payment plan under Chapter 13 usually lasts between three and five years.

 

Can I apply for free?

Can I apply for free?

Technically, there is no free bankruptcy; however, there are ways to reduce or include costs so that the applicant does not have to pay the charges. The costs of filing for bankruptcy before a court are as follows: filing under Chapter 7 USD $ 306 and under Chapter 13 USD $ 281. These costs can be omitted if the applicant’s income is below 150% of the income determined by the poverty line.

The other expense that must be faced is the fees of Lawyers. The preparation of the documentation entails a cost, as well as its corresponding presentation, payment of the expenses of presentation and consultations to verify that the case is successful and that everything is correct. If you want to save these expenses, you can find a Lawyer who takes cases of bankruptcy ad honorem. The local Legal Aid office can contact you with a local Lawyer who acts on an honorary basis or at a low rate.

Those applying for bankruptcy protection are facing financial difficulties, so it is not surprising that the payment of Lawyers fees is complicated. However, it is advisable to consult with a legal professional before making the bankruptcy application personally. The advice on how to make the application and submit the required documentation, as well as what should be displayed at the meeting with the creditors, will help the applicant to be prepared for the day to be presented in court.

 

Speak Today with a Lawyer Qualified in Bankruptcy

Speak Today with a Lawyer Qualified in Bankruptcy

This article aims to be useful and informative. But legal issues can be complicated and stressful. A bankrupt Lawyer can meet your particular legal needs, explain the law and represent you in court. Take the first step now and contact a qualified Lawyer bankrupt near you to discuss your specific legal situation.