If you've tried everything you can think of to avoid bankruptcy but have run out of options, the first thing you should do before filing is talk to a bankruptcy lawyer. You can hire a bankruptcy lawyer or the court can give you one to help you through the process. If you decide to choose your own lawyer, make sure to choose someone who knows about bankruptcy law and, if possible, someone who specialises in bankruptcy law.
Regardless of which bankruptcy lawyer you choose, you should always be ready to ask questions about your own case. Here is a list of questions you should always ask your lawyer to learn more about your bankruptcy proceedings:
- What kind of bankruptcy should I file?
Keep in mind that there are eight different ways to file for bankruptcy in the Federal court system of the United States. Chapter 13 and Chapter 7 are by far the most common, but there are many different rules and details that apply to each type of filing. A good bankruptcy lawyer will be able to look at your financial problems and tell you which type of bankruptcy will help you the most.
- How do I start the bankruptcy process?
The state where you live is where you will have to file for bankruptcy. If you plan to have a bankruptcy lawyer represent you, their legal staff can help you put together all the paperwork you need to give to the court. If you just want to talk to the bankruptcy lawyer, make sure you don't leave his or her office without the paperwork you need to start the process.
- What kind of fees do I have to pay?
This is an important question to ask about both your bankruptcy lawyer and the court system. Most bankruptcy lawyers will offer a free consultation, but they will charge for any time they spend on the case or in court. Some lawyers charge by the hour for bankruptcy services, while others charge a flat fee. Also, courts usually charge a filing fee, administrative fees, and extra Chapter 7 fees to pay the trustee in charge of the bankrupt person's account.
- Where do I go to make a claim for bankruptcy?
In every state, bankruptcy cases are heard by the federal courts. This usually means that the person who is filing for bankruptcy will have to take the paperwork to the state courthouse, which is usually in the capital city of the state. Your bankruptcy lawyer should know the address and the rules about whether paperwork can be sent by mail or needs to be given in person.
- What happens after filing for bankruptcy?
As soon as you file for bankruptcy, the court system will tell your creditors that a bankruptcy case is coming up. From now on, the debtor has a "restraining order" against the creditors, which means they can't contact the debtor to ask for payment. Depending on the kind of bankruptcy, a hearing will be set up, and creditors will have a certain amount of time to file a claim and come to the hearing. Obviously, what happens next depends on the type of bankruptcy filed, so it's important to talk to your bankruptcy lawyer, who can answer these questions more easily.
