As we approach the next year, I think most of you would agree that we are living in one of the worst economies in most of our lifetimes. We live in an economy where most of us are living paycheck to paycheck, about 61% of the population lives paycheck to paycheck. As a Darien bankruptcy lawyer, I see that many people are getting evicted from their homes or their apartments. People are just not able to make it.
One of the ways that the government has put into place in order to help people out to give them some relief, to show compassion towards people is bankruptcy. The two options in bankruptcy for consumers like yourself are Chapter 7 which is a complete fresh start bankruptcy, and Chapter 13 which is a re-organization of your debt. I want to begin by talking about filing Chapter 7 bankruptcy, the fresh start.
What you are saying to the court in a chapter 7 bankruptcy is that I really have no money to pay my creditors back anything. Therefore, once that’s proven through your attorney, the court will allow you to discharge or debts and give yourself a fresh start. And isn’t that what we really need in life sometimes is just a fresh start?
There are many myths about Chapter 7 fresh start bankruptcies. One is I will lose all my property. That is just not true. The majority of people when they file Chapter 7 bankruptcy are able to keep their homes and their cars and most of their possessions.
Let’s dive into the bankruptcy process. The first thing you need to do is find a good attorney. I know there are a lot of people out there that want to take advantage of people that will force you into something you don’t want to do. One of my main suggestions would be never go to an attorney who will charge you for your initial consultation. Once you find an attorney and you retain them, which means that you hire them, your attorney will pull your credit report and prepare your petition. It’s about a 50 to 60 page document which will detail all your assets and liabilities. In Chapter 7, you do have to list all your debts and obligations as well as all your assets. If you have questions about bankruptcy that you feel that you would like answered, contact a local bankruptcy lawyer and set an initial consultation. Most attorneys will offer the first consultation without a charge.