What happens in Bankruptcy?
The financial situation of a debtor is something that will prompt them to file for bankruptcy. This could be as a result of reduction in income that has drastically occurred, a medical condition that has drained your savings and income or an accident that has tragically lead you to loose everything. What happens in bankruptcy will depend on the consultation that you have had as well as the lawyer representing you. They should be able to let you know what will happen so that you are prepared mentally and emotionally.
You should look for a lawyer who will be able to give you advice and the necessary information about the case. The initial meeting with the lawyer is very important, the consultations are normally free. You will only be charged after choosing to work with the lawyer. The lawyer will be required to provide the client with information on what happens in bankruptcy in a language that they are able to understand. They should also be able to evaluate the value of assets that the client have.
After successfully sending your petition what happens in bankruptcy is this. The court dealing with your bankruptcy case will be required to inform your creditors and anyone whom you were indebted to. They will be able to give you a date for your first hearing that will be scheduled to take place when anyone whom you owe money to should be present. This will usually take place a month after the filing of the bankruptcy case.
What happens in bankruptcy will depend on the filing made, whether chapter 7 or chapter 13. After the filing of the bankruptcy case, your debtors will be stopped to collect credit fro you. This means that they will not be able to repossess even that property that you are unable to pay.
It is mandatory that you attend the 341(a) meeting of creditors. A trustee who will be appointed to meet you and your lawyer will also be present and will be there to ask you questions about your filing. At this point you are able to give the history of your financial problems such as reduction in income or sickness. The trustee will also ask you questions about your assets. At this point what happens in bankruptcy will depend on Chapter7 or Chapter 13. This means your petition result will vary. If it is successful, it is approved in a period of two months.