An Introduction to the Process of Bankruptcy Filing

Filing for bankruptcy can seem like a very daunting process, but it is actually quite simple. If you have the right attorney by your side, they can walk you through how to file for bankruptcy in Memphis step by step. But that doesn't make it any less intimidating when you first begin. After all, it is a big step to take. This article will give you a brief introduction into the bankruptcy filing process so that you have an idea of what to expect and can hopefully eliminate some of the fear of the unknown.

Skeleton Filing

Depending on your situation and the type of bankruptcy you are filing, you may first want to file what is called a skeleton bankruptcy. This is when you only file the basic initial paperwork with a bankruptcy attorney, declaring your intent to file fully at a later time. If your home is in foreclosure with a closely looming sale date, this can be a good way to stop the foreclosure process while you gather the remaining paperwork for filing a full bankruptcy. Just keep in mind that a skeleton filing only lasts for so long before foreclosure proceedings resume or you must proceed with the full filing.

Full Filing

A complete or full bankruptcy filing is when you file all of the paperwork to move forward with the bankruptcy itself. You can either begin with this form of filing, or proceed with this after filing a skeleton bankruptcy, depending on your particular situation. Essentially, this is just a bunch of paperwork outlining what all of your debts and assets are so that the court can form a repayment plan for you (Chapter 13) or begin to liquidate your assets to repay the debts (Chapter 7).

It is very important that you are as detailed and accurate as possible in this paperwork. Failing to include certain debts or assets can lead to serious consequences. This is why it is vital to have an attorney at your side while filing; they will help to remind you have assets or debts you may have forgotten about, like personal loans from friends or family members. They will ensure nothing is overlooked so that your bankruptcy filing is complete and accurate.

Stopping Collections

The first thing that will happen after you file for bankruptcy is that collection attempts on your debts should immediately cease. This includes wage garnishments, foreclosure proceedings, and collections calls. If you do receive any such calls after filing bankruptcy, you should direct them to your attorney.

Repaying Debt

Depending on the type of bankruptcy you file, your debts will be paid in 1 of 2 ways. For a Chapter 7 bankruptcy, the court will begin to liquidate your assets, which can include your home and car, in order to repay what you owe to your lenders. Your debts are then fully repaid and you don't have to worry about making any future payments.

For a Chapter 13, the court will create a repayment plan for you. They will lump all of your debts together and determine an affordable monthly payment for you until you can repay all that you owe. In these cases, your future payments will be made to the court, and they will be responsible for dividing up your payments among your various lenders.

Filing bankruptcy can be an emotionally trying and even frightening process for many people. If it is something you are considering, make sure you find a reliable and supportive attorney who can guide you through how to file for bankruptcy in Memphis. Having such an ally can make the process a lot more manageable.

Source : articlesbase.com