There are times when the loans we took thinking that the repayments for the same will be made on time and assuming that with the passage of time, the financial situation will only get better for us. However, economic crisis and the global recession proved us wrong and caught us in the wrong foot. The result was tough financial situation and individuals found in a tight spot when it came to repaying the online installment loans.
The economic recession in 2008 saw a lot of people simply unable to make the repayments of the debts they were in completely. They were taken by surprise and with all the people facing a similar situation there was less to no help available for them when it came to the financial assistance from the relatives and the friends.’
Bankruptcy and foreclosures became a lot common. Whether bankruptcy is right for you or not is a tricky question and should be best left to the bankruptcy attorneys to deal with them. In case you are seriously looking for filing for bankruptcy, the first valid step would be to find a reputed and experienced bankruptcy attorney. The attorney will listen to your situation. Ask you questions related to how you landed up in a financial trap and what prompted you take so many loans. Once the attorney is convinced with your financial situation, they can come up with a solution to your problem.
If you are looking to get the appropriate solution to your financial state, you need to prepare certain details on your own , which is most probably going to be asked to you the moment you get in touch with the attorney. Here is the list of the documents required to make yourself prepared for the meeting:
A note from the creditor with regards to your debt and the dues on them.
Payment reminder and warning letters from the collectors and the if any of the papers you have received from the court.
Any notice related to foreclosures, repossession or calling off of services.
Pay stubs for the past six months to prove your financial state
Documents related to the Tax Returns for the past two-three years.
Identification proof and the SSN number.
Depending on the filing, whether you go for chapter 7 or 13 bankruptcy, your case will be dealt with and your debts will be discharged within a time span of 3-5 years as in chapter 13 or may be resolved in a short time span of just 4-6 months under chapter 7. However, one must understand that this is general information and it can vary depending upon the state laws and the court rulings.
Prior to filing for bankruptcy, you will be required to attend a credit counseling session with any of the approved agencies. This needs to be done 180 days prior to filing for bankruptcy.
There are state specific rules related to bankruptcy. In some cases for filing bankruptcy in a state you need to be a resident of the state for a minimum period.
Once you have filed for the bankruptcy in the court of law, you will be required to provide detailed information related to your assets, income, liabilities and the expenses within 15 days time. However, if you decide to go for the chapter 13, you will be additionally required to offer a repayment schedule for the debts which cannot be written off.
In case of the chapter 13 filing, within 30 days , the debtor will be required to make the first payment to the trustee of the court. However, in case you go for the chapter 7, you will be required to submit a document which states the details of the debts you would like to reaffirm in order to retain your property.
Once you reach 45 days from filing for bankruptcy, there will be 341 meeting called by the court where you, the debtor will meet the creditors in presence of the trustee of the court. Herein you will be required to testify the information offered to the court.
If you want your debts to get discharged under bankruptcy, you will be required to take a 2 hour education course from an approved agency. You should always consult your attorney for the same.