hen people find a bankruptcy lawyer to assist them, they are surprised to find that there are several bankruptcy options and not just one option. Bankruptcy is not the death sentence that some people think. In fact, credit offers are readily available after filing for bankruptcy. This is partly due to the fact that creditors know that you cannot file for Chapter 7 bankruptcy protection within 8 years of a prior filing. Thus, there is plenty of time for a creditor to seek collection in the event of default. However, the goal is not to have you default again after filing. The goal is to earn interest on the money being loaned out.
Most people are aware of Chapter 7 bankruptcy and the relief that it provides. What most people don’t realize is that there are many steps to the bankruptcy filing. Long gone are the days where consumers purchased forms at the local office supply store and paid the clerk of court a small filing fee. In fact, things have changed greatly. Some of the bankruptcy basics have stayed the same. There is still a meeting of creditors and a notice is still sent to all parties to the case. However, so much had changed in terms of items required to file.
If you are even considering claiming bankruptcy, you are going to want to start saving particular items. The first item would be all of your bills. These include credit card statements, medical bills and any other type of evidence of debt. Your attorney will need those documents in order to properly prepare your bankruptcy petition. Next, you should start to save your pay check stubs. These are needed under the current bankruptcy law. If you do not have stubs, we can print out an affidavit stating that you do not receive such proof of income. If you are receiving any other type of income, keep a record of it for your case filing.
Do keep in mind that there are some alternatives to bankruptcy. They don’t always work and I caution clients against something that sounds too good to be true. Sometimes, a creditor will be willing to reduce the balance in exchange for a lump sum payment. The problem is that most debtors do not have the ability to make that lump sum payment. Explore all of your options and remember that bankruptcy is not a death sentence. You can re-establish credit within approximately 6 months to 2 years after filing for bankruptcy protection.