During the initial consultation, you need to present the case facts and documents clearly to your expert. Have all the essential financial information ready and prepare yourself to answer all questions thoroughly and as candidly as possible.
When facing financial difficulties to the extent of having to file for bankruptcy, you need to exercise caution and care. You need a clear understanding of the situation, look at the options, and salvage what you can. According to some experts, hiring an expert to help file for bankruptcy in Phoenix is the first and necessary step towards financial recovery.
In the following section, we have listed a step-by-step overview of what you need to do when filing for bankruptcy.
Determine the type
There are several specialized types of bankruptcy for business situations. However, we will concentrate on the two main ones.
Chapter 7
It allows an individual or business to liquidate the non-exempt assets for paying the debt to creditors. Once you file for one, you can fix a date for meeting with the creditors to pay off your debt. You cannot file for one if you have a prior Chapter 7 (within eight years) or Chapter 13 (within six years). Before the filing, you have to determine whether your monthly income is below the state’s median income.
Chapter 13
Individuals with regular income but who aren’t able to bear the debt burden usually file it. Here a repayment plan is created that allows you to pay back the majority of the debt over a stipulated period. Chapter 13 can be more challenging to file but will allow you to keep your home, car, and other personal belongings as you pay off the debt.
Make a list of bankruptcy attorneys
Keep in mind that facing bankruptcy is stressful. Moreover, you need to qualify for filing each bankruptcy paper. If your income is beyond the state’s median income, you need to put forth documentation about the utilization of the majority of the fund to pay off the debt. Such details and paperwork will require expert legal help and handling. So, you need to create a shortlist of all the reputed bankruptcy attorneys in and around your area.
Narrow down the shortlist
Once you have the shortlist, you need to select the right one. To narrow the choices down, here are some pointers to keep in mind.
- Always work with a licensed attorney
- Ensure that your specialist is truly experienced with the details of bankruptcy law
- Ask around for authentic recommendations from friends and family members
The initial consultation
During the initial consultation, you need to present the case facts and documents clearly to your expert. Have all the essential financial information ready and prepare yourself to answer all questions thoroughly and as candidly as possible. Keep in mind the details you share with your attorney can prove to be vital in your case. Lastly, here is a list of case-related questions that you should ask your attorney.
- Is filing for bankruptcy the only option?
- Are there any red flags in the case?
- How long is the legal process?
- What is the overall plan of action for your case?
- How will the lawyer update you on the proceedings?
- What are the payment plan, refund policy, and retainer?
Last but not least, remember to work as a team with your legal expert. All the best!
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