The first step in filing for bankruptcy is to find a bankruptcy attorney that is honorable and of a good reputation. They will help you understand the bankruptcy experience better and will help you determine if bankruptcy is going to be a desirable option for you.
The next step will be to determine what type of bankruptcy you will need to file for. There is Chapter 13 bankruptcy and Chapter 7 bankruptcy. Chapter 13 bankruptcy is the most popular type of bankruptcy which does entail a repayment plan. Chapter 7 bankruptcy involves the liquation of your assets.
A bankruptcy attorney will help you best determine what type bankruptcy you will need to file if you are uncertain. A good bankruptcy attorney will also advise you against filing for bankruptcy if it is not in your best interest to file for bankruptcy.
In order to file for bankruptcy, you will first have to pass what is called a “means test.” The means test will determine your income, your debts and all of your other expenses versus the amount of money that you are able to bring in.
Filing for bankruptcy will stop your creditors cold in their tracks. However, you will need to consider what it will do to your credit score and other factors like that. Depending on how much you owe it could be worth trying to negotiate your debt with your creditors instead of filing for bankruptcy. A good bankruptcy attorney will be able to advise on how to go about this.
A good bankruptcy attorney will be able to provide you with a free initial consultation. With these first few consultations, you will mainly be in the document gathering business. The attorneys will need to see a copy of your bank account information, bills, and credit card statements, as well as how much you are paying for rent or a mortgage. Documents like these will be vital in determining if you will be able to qualify for bankruptcy or not.
Bankruptcy is a fairly complex process. You should not expect to be able to just walk into a bankruptcy attorney’s office and file for bankruptcy and it is finished. To complete the entire process could take several months if not even longer.
Many states also require that you visit a financial counselor after you file for bankruptcy. This process should not be taken lightly. The cost of filing for bankruptcy will depend on who you choose as a bankruptcy attorney. However, generally, you are going to end up paying at least a thousand dollars in attorney fees.
Why You Should Hire A Bankruptcy Attorney
According to debt.org those who hired a bankruptcy attorney for Chapter 7 had their debts discharged 91.5% of the time. Those who chose to represent themselves in Chapter 7 had their debts discharged just 66.7% of the time. Those who chose to represent themselves in Chapter 13 bankruptcy were successful only 2.3% of the time, versus those who were represented by an attorney were successful 41.5% of the time.
If you are looking for a good Bankruptcy attorney in the Tulsa, Oklahoma area please feel free to contact Hanson & Hanson Bankruptcy attorneys.