What to Expect During the Bankruptcy Process?

Through the bankruptcy process, individuals or businesses that are struggling with overwhelming debt can find relief and begin the journey toward financial stability. The process can be complex and intimidating, but with the guidance of an experienced bankruptcy lawyer in Roanoke, Virginia, it can be navigated successfully.

When considering bankruptcy as a solution to debt problems, it’s essential to have a clear understanding of what to expect throughout the process. Here is an overview of the key steps involved in filing for bankruptcy:

Filing for Bankruptcy

The first step in the bankruptcy process is to determine which type of bankruptcy is most suitable for your situation. The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13.

In a Chapter 7 bankruptcy, also known as liquidation bankruptcy, your non-exempt assets are sold to repay your creditors. In contrast, Chapter 13 bankruptcy involves creating a repayment plan to pay off your debts over a period of three to five years.

Automatic Stay

Once you file for bankruptcy, an automatic stay goes into effect. This legal protection prevents creditors from taking any further collection actions against you, including lawsuits, wage garnishments, and phone calls demanding payment.

It’s important to note that certain debts, such as child support, alimony, and most student loans, are not dischargeable in bankruptcy.

Meeting of Creditors

After filing for bankruptcy, you will be required to attend a meeting of creditors, also known as a 341 meeting. During this meeting, you will answer questions under oath from the bankruptcy trustee and your creditors, if they choose to attend. Your bankruptcy lawyer will accompany you to this meeting and provide guidance throughout the process.

Repayment Plan or Liquidation

If you file for Chapter 13 bankruptcy, you will need to propose a repayment plan to the court for approval. This plan outlines how you will pay off your debts over the next several years. In contrast, Chapter 7 bankruptcy typically involves the liquidation of assets to repay creditors.

Financial Management Course

Before your bankruptcy can be discharged, you are required to complete a financial management course approved by the U.S. Trustee’s Office. This course is designed to provide you with the tools and knowledge needed to manage your finances more effectively in the future.

Discharge of Debts

Once you have completed all the requirements of your bankruptcy, including the repayment plan or asset liquidation, and the financial management course, your debts will be discharged. This means that you are no longer legally obligated to repay the debts that were included in the bankruptcy filing.

It’s important to keep in mind that not all debts are dischargeable in bankruptcy. Debts such as child support, alimony, most student loans, and certain taxes may not be eligible for discharge.

How We Can Help

While the bankruptcy process can provide much-needed relief from overwhelming debt, it is essential to have experienced legal guidance throughout the process. A bankruptcy lawyer in Roanoke, Virginia, can help you understand your options, navigate the complexities of bankruptcy law, and work toward a fresh financial start.

At [Law Firm Name], we are dedicated to providing personalized and effective legal representation to individuals and businesses facing financial difficulties. Contact us today to schedule a consultation and learn more about how we can help you through the bankruptcy process.