Life is unpredictable, and financial strategies don’t always pan out as planned. If you’re struggling to stay afloat and want to know how to file bankruptcy, The Gil Law Firm in Dothan, Alabama, will help.
Here are the steps you need to take if you want to file for bankruptcy:
- Assess Your Debt: There are some types of debt that bankruptcy does not discharge, including alimony, child support, certain student loans, and some tax bills. If you want to know how to file bankruptcy, the first step is categorizing all your debt to determine if doing so makes the most financial sense for your particular situation.
- Consult An Attorney: There are two types of personal bankruptcy: Chapter 7 and Chapter 13. An attorney will help you determine which type you qualify for. In Chapter 7 bankruptcy, which is for individuals whose income is below a certain level, liquidated property is used to pay back creditors. In Chapter 13 bankruptcy, individuals devise a payment plan with their creditors that allows them to pay back their debt in three to five years based on their income.
- Fill Out The Bankruptcy Forms: An attorney from The Gil Law Firm will ensure you fill out all the bankruptcy forms accurately to prevent delays in the proceedings. On the forms, you will have to list all your financial data, including your income, debts, and property. If you are filing for Chapter 13, you will also need to list your repayment plan.
- File The Forms: Once your attorney helps you file the forms with the court, you will receive a bankruptcy trustee, who works on behalf of the creditors. The trustee verifies the information that you listed. If you’re filing Chapter 7 bankruptcy, the trustee will then liquidate any non-exempt property.
In Chapter 13 bankruptcy, individuals must also attend two hearings. The first is with their creditors, and the second is in front of a bankruptcy judge, who will confirm the payment plan.
If you have questions about how to file bankruptcy, an attorney from The Gil Law Firm in Dothan, Alabama, will guide you every step of the way. Visit their website to learn more about their areas of practice, and call (334) 673-0100 to schedule an initial consultation today.