Bankruptcy is a legal step that people take when they are deep in debts and their current sources of income are too less to pay off the debts. However, as there are many complexities involved in bankruptcy laws, you need to know many things before filing bankruptcy. To start with, you must be aware of the various steps involved in filing court petition for bankruptcy.
Hiring a bankruptcy lawyer
The bankruptcy laws are very complicated and it is not easy for a common person to be aware of all the ins and outs associated with filing bankruptcy. Therefore, it is always recommended to hire a bankruptcy attorney to deal with your specific bankruptcy case. However, you need to be very careful while choosing the right bankruptcy attorney for you, like, the bankruptcy attorney you hire must be an experienced one. Here, you should also note that bankruptcy laws change from state to state. Therefore, make sure that the bankruptcy attorney you have chosen to deal your bankruptcy case is thoroughly aware of the specific bankruptcy laws, applicable in your state. Also, make sure that the bankruptcy attorney you have chosen is licensed to handle bankruptcy cases in your state.
Bankruptcy cost
The next step in filing bankruptcy is to evaluate the overall filing bankruptcy cost. Filing bankruptcy involves many expenses, which you have to pay like, the filing bankruptcy fee, bankruptcy attorney fee, and various other types of expenses, such as conversion fee. Evaluating the bankruptcy cost beforehand is an important step before filing bankruptcy. In the last four to five years, the filing fee for bankruptcy has risen substantially. You must expect to pay hundreds of dollars for the same. Again, the bankruptcy lawyers will also charge you thousands of dollars, depending upon your specific bankruptcy case.
Types of bankruptcy
While you are filing bankruptcy, one of the most important things that you may have to decide is the type of bankruptcy. However, deciding about the type of bankruptcy is no more a matter of choice. Now, with the inclusion of the new bankruptcy laws, there are certain steps that you need to follow in order to figure out the right type of bankruptcy you are eligible for. For example, now it is mandatory for you to pass a Means Test and go through a Government approved credit-counseling service, before filing bankruptcy.
Your bankruptcy attorney will work with you hand in hand. He or she will guide you through the complete filing bankruptcy procedure.
Filing bankruptcy involves a series of steps that you must be aware of. From hiring a bankruptcy attorney to ascertaining the bankruptcy cost, there are plenty of things that you need to look into. Filing bankruptcy provides all the information you wanted to have about filling bankruptcy process and other bankruptcy related issues.
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