Today, more people are filing bankruptcies than ever before. Over the last century, bankruptcies are steadily increasing. 2005 had the highest bankruptcy filings with over 2 million unique cases. This means one out of every 55 households filed for bankruptcy that year. Before you file forbankruptcy, here are a few things you need to know.
When Should You File for Bankruptcy?
Filing for bankruptcy in Waycross has the best results when you file with an attorney you trust. It's in your best interest to consider filing bankruptcy if,
- You are only paying the minimum balance on your credit card
- Bill collectors are constantly calling
- You feel your finances are out of control and you have no way of regaining control
- You are considering debt consolidation, and the outcome doesn't seem promising
- You are using your credit card to pay for necessities
Bankruptcy is one option you have when you owe more money than you can afford to pay.
Becoming Familiar with the Process
Gathering Necessary Paperwork
Filing bankruptcy in Waycross requires specific documents, including all income sources, living expenses or each month for the past two years, list of your property which includes possessions as well as assets, tax returns for the last two years, and bank statements for the past two years to keep track of major purchases that were made.
You can file bankruptcy on your own, but it's in your best interest to have an attorney by your side. There is a two-page petition you and your lawyer need to complete along with other critical documents at your district bankruptcy court. Your lawyer will advise you of any exemptions if you qualify.
An automatic stay is a breath of fresh air for people who file bankruptcy because. An automatic stay takes place immediately and gives you peace of mind by preventing creditors from calling your home as well as staking claims on any property you own. Any current foreclosure processes will stop.
Once you file the required paperwork, the court will appoint a trustee to your case, and the courts will assume control of all debts and property you own that are not covered by any Georgia exemptions. The appointed trustee will ensure your creditors are paid as much as possible once they review your paperwork.
Meeting of Creditors
A meeting of creditors, also known as as the 341 meeting, is held one month after you file a Chapter 13 bankruptcy. Creditors rarely attend a creditors meeting for Chapter 7 bankruptcies. The meeting will last five minutes or more and your counsel will compromise on your behalf for favorable options until an agreement is made. If no agreement is made, a judge will have to intervene to make the final ruling.
Meeting the Requirements for Chapter 13 Bankruptcy
Filing a Chapter 13 bankruptcy is different from a Chapter 7 bankruptcy. In addition to the paperwork you must submit for a Chapter 7 bankruptcy, Chapter 13 bankruptcy requires you to submit a payment plan that must discuss how you plan to repay the money you owe by determining your monthly expenses and the amount of money you have once your expenses are paid. The remaining funds you have will be put toward the balance you owe until it is completely paid off.
Filing for bankruptcy in Waycross doesn't have to be a long and difficult journey. Having an attorney represent you will greatly benefit you. Bankruptcy lawyers are familiar with the laws of Georgia, and have extensive knowledge of the proceedings of the courts.