How The Bankruptcy Process Works
If you are struggling with the burden of unmanageable debt, bankruptcy may be the answer for you. The bankruptcy process is complex and working with an experienced bankruptcy lawyer can help you avoid mistakes and complete the process successfully.
I am attorney Steven F. Bilsky, and I am here to help. I have been helping clients in Memphis since 1980. I offer a free initial consultation to answer your questions. I can help you determine if you are eligible for bankruptcy, if bankruptcy is the best solution for you, and what type of bankruptcy is best suited to address your debt problems.
What Happens When You File?
- You must to take the means test to determine eligibility for Chapter 7.
- You must complete credit counseling prior to filing.
- You (or your attorney) files your documents and pays the filing fees with the court.
Protected By The Automatic Stay
After you file a Chapter 7 or a Chapter 13, you a couple of important things happen. All collection activity must stop. The automatic stay is in place the moment you file, and prohibits debt collection activity during a bankruptcy.This provides some breathing space for you to take stock of your situation and a relief from the oppressive calls from bill collectors.
In a Chapter 7, would proceed more rapidly. Because many Chapter 7 bankruptcies involve few assets, the trustee issue a ‘no asset’ report, and usually in less than six months, a discharge is granted.
A Chapter 13 lasts longer. You would create a Chapter 13 plan, which details how you will treat your secured and unsecured debt. In this process, you make payments to a trustee, who then pays your creditors according to the terms of the plan. It is important to remember that you must continue making payments on most secured property, like a car or home.
I can answer your questions concerning how the process is likely to proceed based on your specific situation when we speak. A bankruptcy can help you deal with:
- Credit card debts
- Medical bills
- Wage garnishment
- Auto repossession
- Lawsuits and judgment debts
Your debt problems are unlikely to go away on their own. I can help you understand your debt relief options and develop a plan to resolve your problems with your debts. Put my four decades of experience to work for you.