Bankruptcy is a big step that involves significant negative impact on your credit, so it is important that you only enter into it after understanding exactly what you are facing. That said, it can be a way of obtaining a fresh start after a severe financial crisis, such as a job loss or accumulation of substantial medical bills. It is important that you have a College Station bankruptcy attorney in your corner who will help you through the complexities of the process.
First Steps toward Your Bankruptcy
A significant overhaul of the bankruptcy system was made in 2005. The changes make it more difficult for serial filers to take advantage of the system. Unfortunately, it also made it far more difficult for honest individuals who through no fault of their own find themselves in financial distress.
One of the changes is that before you can file the bankruptcy petition you must take a credit counseling course. You can do this online, but this must be completed within 180 days of your filing for bankruptcy. You will need to have the certificate of completion to attach to your petition.
Once you complete the course, you then fill out the petition. You will need to complete many forms which request information regarding your assets and debts. You will need to provide names and addresses of all of your creditors. An attorney can help make sure you complete everything, for one missing document can throw your entire petition out of court.
The Section 341 Meeting and Beyond
You will be required to attend a meeting of creditors known as a Section 341 meeting. Assuming you do not have substantial assets this meeting will be brief. You will be asked some questions by the bankruptcy trustee. Your creditors will be invited to attend, but this rarely occurs.
You will then need to complete one more online course on financial management. Once you complete this, you need to submit the certificate of completion to the court. Failure to do so will result in a denial of your bankruptcy.
You can expect that the bankruptcy will remain on your credit report for ten years. However, after a few years you may be able to obtain a secured credit card, and eventually re-establish credit.
If You Are Considering Bankruptcy
You should weigh your options carefully before deciding upon filing bankruptcy. Once you know this is your best or only option, make sure to work with a College Station bankruptcy lawyer. Call Peterson Law Group today at 979-703-7014.