How to Prepare for Bankruptcy Court
Typically, struggling with unpayable debts can be frightening and stressful. Most individuals facing this situation are usually overwhelmed and do not know where to seek help. Although filing for bankruptcy may be a viable option, preparing for it can be challenging. This article outlines the basic steps of preparing for bankruptcy court.
Gather Your Income Statements
The first step of preparing for bankruptcy court is usually gathering evidence of your income. A person needs to have copies of proof of income and tax returns for the previous six months when filing a chapter 7 case. Besides, preparing for bankruptcy in this chapter also requires the completion of the Chapter 7 Means Test. This test equates a person’s income to the average households’ income in their respective states. The average income should be lower than the median state income to qualify to file under this chapter.
If your income is above the median state income, there is still a second opportunity to be eligible for Bankruptcy chapter 7 Mobile AL relief. The second part of the Means Test must be completed to ascertain whether the disposable income is less than a particular amount.
Obtain Copies of Your Credit Reports
These copies can be obtained online every 12 months. It is essential to list each creditor you owe in your documents. This must include all unsecured creditors, secured creditors, and priority unsecured creditors. Failure to include a creditor during the preparation means that you still owe them after completing the case. Moreover, signing the bankruptcy documents ascertains that you have listed every debt you owe in the bankruptcy documents under oath.
List Your Assets
Apart from reporting your income, debts, and expenses in your bankruptcy case, reporting assets is also required. You should list your total assets and their value. However, clothing and other household items may not be necessary in a bankruptcy case since smaller things are usually classified together in the documents. It would help if you considered a tax evaluation to determine the property value of expensive assets such as vehicles and real estate.
Complete A Credit Counselling Course
This is also a requirement for preparing for bankruptcy. A bankruptcy course can be helpful since it enquires about expenses and income that you need to fill in the bankruptcy documents. You can obtain the course online at a minor fee, and it can be finished in about two hours. After finishing the course, you can file your Chapter 7 case. You can also consider seeking help from AL Mobile attorneys.
Prepare For Your Bankruptcy Hearing
After filing, the first creditors’ meeting is filed by the court. The hearing is usually piloted by the Chapter 7 trustee allocated to the case. It is essential to review all the instructions given by the court and the bankruptcy forms.
Prepare For Bankruptcy Discharge
Preparing for bankruptcy discharge requires finishing the post-bankruptcy filing program known as the Debtor Education Course. You can complete this course online in approximately two hours, and the fee is usually $10 if you use the same firm you used for the previous course. If you encounter any challenges, you can contact bankruptcy attorney Baldwin County for assistance.
How An Alabama Bankruptcy Lawyer Can Help
A Mobile AL bankruptcy attorney provides legal counsel and helps determine whether it’s the best option. Besides, they also provide and assist in Mobile Alabama debt consolidation services. They critically look at their clients’ assets and debts to determine whether bankruptcy is the ideal choice or whether the issue can be improved by taking a different angle.
By now you are aware of the importance of a bankruptcy lawyer. Are you looking for a bankruptcy attorney to help you through the process? Contact us today at Loris Bankruptcy Law Firm for more information.