When you’re faced with crushing debts, bankruptcy can be an effective way to restructure your finances and get back on track. However, it is important to understand what you’re getting yourself into before filing for bankruptcy.
Chapter 7 Bankruptcy Attorney in Phoenix
If you’re considering filing for bankruptcy in the Phoenix area, it’s important to choose an experienced bankruptcy lawyer who is committed to providing outstanding legal services. They should be able to explain the benefits of filing for bankruptcy in a way that makes it easy for you to make an informed decision. For more details, you ay visit www.phoenixfamilylawyers.net/chapter-7-bankruptcy-attorney/.
You may want to consider a bankruptcy attorney who works on a flat fee basis. This will allow you to keep costs down and ensure that you receive the best service possible.
This means that your lawyer will not charge you for any of the time they spend preparing your case. It also means that they will work hard to protect your assets and minimize the amount of money you pay out.
They will also provide you with support throughout your bankruptcy process, including attending the 341 Meeting of Creditors and working to ensure that your creditors don’t try to challenge your case.
Once you file for Chapter 7, you will have to submit a variety of forms and documents to the court. These include information about your income, expenses, and assets. Your attorney should help you fill out these forms and document your financial situation.
Then, the trustee of your bankruptcy case will review these documents and hold a hearing. The trustee will ask you questions about your finances and will look at your assets.
In many cases, a trustee will dismiss your bankruptcy case if they find that you do not have the means to pay your debts. They will also look at any transfers of property you made within the last 10 years to determine if you acted fraudulently.
If the trustee finds that you do have the ability to pay your debts, he or she will schedule a bankruptcy plan. This is a 3- to 5-year plan that will outline your monthly payments to the trustee. The trustee will then use the funds you send to him or her to pay your debts.
These monthly payments will be determined by your income and the amount of debt you owe. The trustee will then assign each of your creditors a percentage of the money you send them.
It is important to remember that if you have any nonexempt assets (assets that are not protected by exemptions) then the trustee will sell these items and distribute the proceeds to your creditors. Your attorney can help you decide whether these assets are worth protecting by claiming the appropriate exemptions.
Your attorney will also be able to determine if you are eligible for a discharge of some of your debts, such as credit card debt or medical bills. In some cases, you can even discharge personal loans that are not secured by collateral or if you have a high debt-to-income ratio.