Will I Need to List all of My Property During Bankruptcy?

man got bankruptIf you’ve already decided to file for Bankruptcy Mobile AL you may be wondering how the process works and what steps you’ll need to follow regarding property. The first step is to:

Locate a Mobile AL Bankruptcy Attorney

First and foremost, you must hire a bankruptcy attorney with extensive experience. There are various methods for locating a competent bankruptcy attorney Selma. A friend or family member may recommend them. Some persons have legal representation paid for by their employer. Your state bar organization should provide directories with information about bankruptcy attorney Mobile Alabama. The cheapest lawyer may not be the best option for you. Make sure you feel at ease with the attorney and inquire about whom you will be dealing with throughout your case.

Meet With A Property Bankruptcy Counselor

Following that, the bankruptcy process requires you to attend two mandatory credit counseling sessions with a counseling agency that the US Justice Department has approved. Before you file a bankruptcy petition with the courts, you must go through the first round of pre-filing counseling. The counselor will go through your budget with you and show you the benefits and drawbacks of bankruptcy, as well as common alternatives to bankruptcy.

Will I Need to List All of My Property During Bankruptcy?

To figure out which of your properties are at risk under a Chapter 7 Bankruptcy filing, knowing the categories of property that the court could include in a bankruptcy estate is essential. In bankruptcy, there are three sorts of assets:

Personal belongings. Motor vehicles, art pieces, furniture, and clothing, are examples of personal assets.

Real estate. Land and developments or buildings attached to the property, such as a house or storehouse, are considered real property.

Intangible asset. Intangible assets, as their name implies, are property that isn’t physically tangible yet has worth. Intangible property includes things like child support, alimony, and retirement funds.

Submit a Bankruptcy Petition to the Court

Your bankruptcy attorney Robertsdale will file with the court after counseling. The bankruptcy will now appear on your credit record, and creditors will no longer be able to contact you or seek to collect on your debt. Creditors are prevented from contacting you because bankruptcy triggers an “automatic stay,” blocking all legal activities from occurring immediately after the bankruptcy is filed.

Repayment or Liquidation

Depending on whether you file a Chapter 13 bankruptcy or a Chapter 7 bankruptcy, the following stage may include liquidating any valuable assets to repay creditors (Chapter 7) or repaying a portion of your debt (Chapter 13). (Chapter 13). If you file a Chapter 7 bankruptcy and have no high-value assets, your case is referred to as a “No Asset Case,” and the courts will not sell your property. Keep in mind that if you want to keep your secured loans, like a house or car, you’ll have to keep making payments on them in the future. You should disclose any secured property you want to keep after the bankruptcy to your attorney.

Getting Rid of Property Debt

Finally, debts that are qualified for forgiveness are forgiven. Bankruptcy eliminates your debt and relieves you of your obligation to pay creditors who are part of the bankruptcy. If you’ve been having trouble sleeping because of the weight of your debt, the discharge will most likely provide some relief. But keep in mind that the release is only the beginning of your adventure. You must now start the process of repairing your credit.

How a Bankruptcy Attorney Mobile AL Can Help

When filing for Bankruptcy Mobile AL, the knowledgeable team at Loris Law Firm can help you navigate the process and guide you in getting back on your feet as soon as possible. An attorney is always the best way to deal with this life-changing decision.