What Are the Steps to Filing Bankruptcy?

If you’re considering filing for bankruptcy in Chicago, you’re probably scared, concerned, and nervous about your financial future. Understanding what to expect from the process may make it easier to approach. Bankruptcy is a legal process just like any other, and there are several important steps you must take before it’s complete.

Hire an Attorney: Filing for bankruptcy without an experienced bankruptcy attorney is very risky. Most people choose to hire an attorney to help through the entire process. Your Tennessee bankruptcy lawyer will help you understand the process, file your petition, handle your creditors, and represent you in court.
Determine Which Type to File: First, you’ll sit down with your bankruptcy attorney and go over the specifics of your finances. This will help you and your attorney determine whether you should file for Ch. 7 or Ch. 13 bankruptcy. Once you have decided which type to file, you can proceed.
Submit Your Petition: Submitting a bankruptcy petition is an exact process that requires certain legal knowledge. Your bankruptcy attorney will draft your petition with the necessary information included and submit it to the court.
Set a Meeting of Creditors: Once you have filed for bankruptcy, your creditors are legally prohibited from contacting you. You must stop using your credit cards as soon as you decide to file for bankruptcy. At this meeting, you will be questioned and your case examined to ensure that the petition is correct, valid, and truthful. If you have assets to be liquidated, this will occur. If not, you will also file a report of no distribution.
Finalization: After your meeting, all creditors have 60 days to file lawsuits or challenges to your petition. During this time, you’ll work with your bankruptcy attorney to finalize your assets and, if you filed for Ch. 13, set and submit a payment plan.