Going Under And Declaring Bankruptcy: How To Do It Correctly

Are you facing financial hardship that has left you considering bankruptcy?

Are you unsure of how best to go about filing for bankruptcy and what it will mean for your future? You're not alone. Many people find themselves in the difficult situation of needing to declare bankruptcy, but don’t know where to start. This blog post is designed to provide a much-needed overview of the process - from getting prepared through understanding the different forms of bankruptcies available and filing all necessary paperwork with ease. With this detailed guide on going under and declaring bankruptcy, you’ll have all the information that you need at your fingertips so that you can make an informed decision about your financial future. So if you are ready to take the plunge and declare bankruptcy, let’s begin.

Understand the Different Types of Bankruptcy and Which is Right for You

If you’re considering filing for bankruptcy, choosing the right type of bankruptcy is an important decision. Take time to understand the different types of bankruptcies, the associated costs, and what your financial obligations will be before making a decision. There are several filing options available – Chapters 7 and 13 are the most common, but there are also alternatives such as specialized business filings or debt reorganization plans. Researching each one will help you decide which type is right for your current situation and allows you to make sure that it fits your long-term objectives. Make sure to consult with a legal professional or financial advisor who can review your details and help you make a final decision about how best to handle your debt repayment situation.

Determine Eligibility for Chapter 7 or Chapter 13 Bankruptcy

Kentucky residents who are facing financial hardship may be seeking protection through Chapter 7 or Chapter 13 bankruptcy. To determine eligibility for either of these measures, consult with a Kentucky bankruptcy attorney. An experienced lawyer will work with you every step of the way to analyze your income and expenses, develop a budget and payment plan, and ultimately establish if filing for either type of bankruptcy is in your best interest. With the help of Kentucky chapter 13 bankruptcy attorneys, you could get the relief you need from overwhelming debt so that you can create a brighter financial future. Just be sure to work with an experienced attorney – filing for bankruptcy can be a complicated process, so you must have the guidance of someone knowledgeable about the laws and procedures.

Gather Your Records and Calculate Your Total Assets and Debts

One of the most important — and least stressful — steps in beginning bankruptcy proceedings is organizing your financial records and calculating the total value of all your assets, as well as all debts owed. Having this information organized ahead of time can make the process go much more quickly once everything begins, so taking care to properly sort through accounts, health insurance paperwork, loan documents, and tax returns is crucial. This is also an ideal time to double-check whether any debt you may have accumulated over time is disagreement able or dischargeable to allow for smoother sailing later on in the process. Taking it one step at a time by getting your paperwork together now will ultimately save time and stress down the road when it matters most.

Prepare for a Meeting of Creditors and Attend the Meeting When Scheduled

Preparing for a meeting of creditors is essential if you’re considering bankruptcy as an option. The meeting is the opportunity to validate your financial information and debt agreements with all the creditors collectively at once. During the meeting, you’ll be questioned about your ability and intentions to repay your debts and any chance of financial recovery. It’s important to gather all necessary paperwork that documents your income and expenses and to bring copies with you. Be sure to research any questions you anticipate from your creditors thoroughly so answers can be quickly granted and verified during the meeting. Additionally, having extensive knowledge of bankruptcy law before the meeting will help bolster your confidence in yourself that this might be a viable solution for you.

Receive a Discharge Order from the Court, Freeing You From Certain Debts

With a discharge order from the court, you can look forward to being freed from certain debts. It's important to remember that this doesn't discharge all debts--only those specified by the courts in the bankruptcy proceedings before your discharge is granted. There will be some obligations you'll have to keep meeting even after receiving a discharge: alimony and child support payments, student loan obligations, and any debt not specified in the court's bankruptcy decision. To make sure you're following the right steps and receiving an accurate discharge order, it's best that you consult with legal professionals and/or a bankruptcy lawyer as soon as possible to ensure no important details are overlooked.

Going through the process of filing for bankruptcy is a frightening process, but it is also important to remember that it can also be very beneficial in ultimately helping you gain a foothold back on your financial resources. Being properly informed, organized, and prepared are the keys to making sure it goes correctly and proving successful.  By taking one step at a time, understanding your options and scenarios available, as well as having patience with the process, and trusting yourself-you will soon discover that declaring bankruptcy can lead to better opportunities ahead.