Bankruptcy processes are a difficult labyrinth of rules and regulations that can seem daunting at first. States differ in their handling of the bankruptcy process, and depending on the type rules can vary as well. That is why Spodek Law Group released an infographic to help make the process easier to navigate for New Yorkers working their way through the most common bankruptcy process, Chapter 7.
The Spodek law office has assisted New Yorkers work through the difficulty of bankruptcy and on their way to a fresh start. The process can feel like a lonely one when first ventured into. A cloud of shame and frustration often follows those who must partake in the process. However, attorneys like those as Spodek Law Group are capable of helping anyone feel like they can make their way through the process without trouble.
There are two main types of bankruptcy that will be entered into. Chapter 7, also known as “liquidation” is the most common form, with as many as two-thirds of U.S. Bankruptcy cases by consumers filed under the title.
To be considered a Chapter 7, the debtor must be granted as eligible, while an automatic stay occurs following the filing of pensions and allows relief from constant berating from letters and calls from collectors.
During the Chapter 7 process, a trustee liquidates all nonexempt assets and uses those proceeds to pay back the debt. There are debts that are dismissed, but student loans, taxes, and child support or alimony loans are exempt from such dismissal.
There are ten major steps to follow, according to the infographic from Spodek Law Group. First, consulting specialists like those from the Spodek Law Group is key. There one can learn about the necessary steps that will be forthcoming.
Credit counseling prior to the bankruptcy is then necessary, followed be the preparation of the petition for bankruptcy, which must be both thorough and accurate in order to be effective. The document must then be reviewed for its quality and schedules must be set to move forward.
At halfway through the 10 steps is the filing of the petition in court, which gives the mandatory dates for the remainder of the process, and the automatic stay against debtors to relieve the hassle from collectors.
A section 341 Meeting must then be set to handle a trustee meeting, wherein all documents must be present for the meeting. Once the meeting has come, the attorney and client will conduct an interview under oath, regarding funds and assets. Once the meeting is complete, creditors and the U.S. Trustees have two months to object to claims.
Finally, the client is required to attend finance management classes and a notice is discharged is sent to allow the client to attain a fresh financial start.
Spodek Law Group knows just how daunting all the works can be for those considering bankruptcy, and can help all work through each step with minimal difficulty. A fresh start can be just around the corner for all.
Distributed by Iterate LLC
Company Name: Spodek Law Group P.C.
Contact Person: Benjamin Wrights
City: New York
Country: United States