Bankruptcy is a type of legal process that is founded on the provisions of the U.S. Bankruptcy Code. The main component of bankruptcy is to give a filer a renewed start financially. In order to realize this goal, some of the debts are discharged or restructured so that they can be paid. Bankruptcy is also a process that enables creditors to receive some of the money that they are owed.
How to Proceed with a Filing
When you seek help from a bankruptcy law firm in Suffolk, VA, legal representatives in the firm can assist you in filing for bankruptcy, and will further explain some of the legal complexities. The case begins when the debtor pays a bankruptcy filing fee and files a petition with the court. When this happens, the debtor must supply his or her financial details, including a list of debts and assets. This information is provided under a penalty of perjury.
Attorneys in a Suffolk bankruptcy law firm also advise clients that they need to participate in credit counseling before they file either a Chapter 13 or Chapter 7 petition. In addition, debtors must supply a trustee with copies of their tax return as well as copies of pay stubs. As soon as the petition is filed, an automatic stay goes into effect. The stay is used to thwart any debt-collection efforts made by former creditors.
Talk to a Lawyer before You File
When you partner with a bankruptcy law firm to handle your case, you can go through the process more easily. All of the mandates are fully explained during the filing. In addition, clients are advised what type of bankruptcy filing applies to their financial situation.
Needless to say, contacting a bankruptcy law firm is essential if you need to go ahead with your filing and do so with greater ease. Set up an appointment today if you feel you have exhausted any other options for paying down your debts or improving your financial profile.
