Bankruptcy and Filing is State Specific
Where you live will directly affect the way that bankruptcy is filed. No matter where you live and file, a few things remain the same. The following is an example of the bankruptcy process.
- Make sure you have all necessary paperwork. The proper documents will include a full list of all income you maintain, as well as any assets you hold. Income includes any wages made from employment or other financial gains, assets include vehicles and any property you posses. You will also need to obtain all of the general living expenses for one entire month, tax documentation, as well as all of the debt you have incurred.
- Retain an attorney; there are many forms that must be filled out when filing bankruptcy. There is an extreme amount of information required to declare bankruptcy and an attorney can offer you his or her experience to ensure that you are filing all the proper paperwork and are not missing any important information.
- Once you have filed for bankruptcy an automatic stay will occur. An automatic stay is a process that prevents any foreclosure procedures, as well as preventing bill collectors from calling you and all loan repayment activity.
- When you file your bankruptcy petition you will be assigned a ‘Bankruptcy Trustee’. After you have filed the court gains all control over your property and debts. The job of the bankruptcy trustee is to thoroughly review all the paperwork you have filed and if they see any part of the petition that seems out of order or incorrect that have the ability to challenge it.
- Shortly after you have filed for bankruptcy, the assigned bankruptcy trustee will conduct a meeting with you and your creditors, which will likely be their attorney or representative. Within this meeting if any of the creditors object to any aspect of the meeting, negotiations will begin between you and/or your attorney and the objecting creditor. If no agreement can be decided upon, a judge of the court will be the deciding factors on each issue not agreed upon.
