There a lot of steps involved in the process of filing a bankruptcy. This is a legal proceeding that involves a business or a person who is not able to repay their loans or any debts. If you have decided to go ahead and file bankruptcy, then you might find it quite hard without the help of legal experts. It can be quite intimidating if you don't have the help from an experienced law firm. There are mainly two types of bankruptcy filings – a Chapter 7 and a Chapter 13. Both may take same time for filing but the process differs.
To make things easier and better for you, we at Fong Law Group can help you with the bankruptcy process. We are located in Monterey Park, California and its surrounding areas. Contact us, if you have any questions or queries related to the filing process.
Process of filing bankruptcy
So, what can a bankruptcy process involve? There are different steps that are involved in this process and these are:
Counseling before bankruptcy
Before the bankruptcy filing, you have to go through counseling where a credit counselor approved by the Government will discuss the possibility of the bankruptcy filing in the next 6 months. Here, you have to let them know about your financial situations, options for bankruptcy and starting a new budget.
Filing the petition
So, the next step will be will be to file the petition and this is one of the most complicated process. In this process, you have to provide all the documents that show your outstanding debts and categorize them in a proper form using a particular format. We, Fong Law Group, will create these documents for you after consulting with you regarding your financial situation and assessing your financial documents.
The next step is called an Automatic Stay, and this will come into play as soon as you file the petition. With this Automatic Stay, it will stop the creditors from collecting the money from you. The creditors will not be able to call you or ask for the money, repossess your car or your house etc. But the creditors can go to the court for lifting the automatic stay order.
Sending the papers to trustee
You will have to meet the creditors after filing the petition but before that, you have to send all the documents to the creditors at least 5 days before the meeting. These documents will help to prove your statement about bankruptcy. Hence, the important papers or documents that you have to send are - current tax return documents, paychecks and your bank statements.
Meeting with creditors
The bankruptcy trustee will arrange a meeting of the creditors and you will have to attend it. Here, your identity will be verified and you will be asked questions regarding your finances and bankruptcy petition that you have filed.
Do you want to file bankruptcy following the exact legal proceeding smoothly and effectively? You need the best one law firm in Monterey Park California and surrounding areas.
Call Fong Law Group at (626) 289-8299 for a FREE consultatin, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.