When you have to do something that is difficult for you, it can help to know what to expect. This is just the general procedure on the road to bankruptcy, as each case is different.
1. Find a lawyer: You can search online for prices and lawyers or go to a site that provides free advice; they might be able to recommend someone for your particular situation.
2. Find the money for a lawyer. You can agree to a monthly payment plan and ask to do as much paperwork on the case as possible to save money.
3. The paperwork. In addition to gathering all the information for the paperwork, you may be required to take a class on financial matters before you are allowed to file for bankruptcy. You can take this class online or over the phone. This part of the process can be time consuming and you should set some time off for this.
4. Meeting and Hearing. You will receive a letter in the mail telling you the time and place of a meeting. The main purpose is to make sure that you are the person applying and to get to know the creditors. Most creditors do not come to this meeting, but will negotiate with your attorney. This meeting takes no more than 5-15 minutes; however, you may wait up to an hour for your turn.
5. Waiting for the result. When this meeting is over, you will have to wait until the case is over and it will depend on the type of bankruptcy you filed for, if it is a chapter 13 and you are under a payment plan, it will take a year. If it is a chapter 7 it will take 2 months.
When you are bankrupt, your life is on hold and the future may be unknown. For many people who have lived under extreme financial pressure with ever-increasing interest rates and no money in their paycheck to feed themselves and their children, this is a relief and gives them a break. You can go back to eating and resting. If you have garnishments on your account and constant rude phone calls from creditors, you’ll have some peace of mind again.
