Bankruptcy is not something that you should go into blindly. There are requirements to be met, choices to be made, and rules to follow for both chapter 7, and chapter 13 bankruptcies. First of all, the law provides that you meet with a credit counselor to determine if bankruptcy is in fact, the only resolution to your financial woes. The counseling agency that you choose must be approved by the judicial district in your area.
When you meet with the counselor, you will need to bring documentation of your income, a record of your monthly expenses, and a list of your debt. It would be unusual for a counselor to conclude that you could conceivably work out a plan to handle your debt on your own, but if he does, you are under no obligation to follow his advice, but you will need to make the court aware of it.
As usual, there are exceptions to this rule of bankruptcy. A trustee from the Judicial Branch of the U.S. Government may determine that there is no counseling agency in your district that is appropriate to your needs. This however will probably not mean that you are excused from the obligation, since counseling can be done online. A better chance for exemption is would be if you can prove mental incapacity, or if you are actively deployed by the military.
So, you will more than likely have to make arrangements for counseling with a credit manager. You will also need to take a course in money management from a debtor educator before your bankruptcy can be discharged. The point of debtor education is to teach you how to handle your finances after bankruptcy, so that you will never again have to go through the harassment from collectors,or disapproval of others that often comes with having to claim bankruptcy. Debtor education providers, as well as a list of pre-approved colunseling agencies for every state, can be found on the U.S.Trustee’s website, @ www.justice.gov/ust.
A bankruptcy attorney from Parker Lawyers will work to negotiate with your creditors to avoid bankruptcy, but if it is inevitable, your attorney has the expertise to guide you through every step of the process. Call 303-841-9525 today, to arrange a consultation.