A Lawyer and the Bankruptcy Process Go Hand in Hand

by | May 14, 2019 | Lawyer

The process for filing for bankruptcy in Mattoon IL starts with the gathering of paperwork. The more organized a person is the easier the bankruptcy process will be. In addition to being easier, if a bankruptcy lawyer in Mattoon IL is used to help with the bankruptcy process, the whole cost of bankruptcy will be less. The reason for this is that there will be less work for the lawyer or law firm which means that there will be fewer charges for their time spent on the bankruptcy case.

Paperwork Required

The paperwork needed starts with itemized income sources, all assets, all major financial transactions done in recent years, debts, and all monthly living expenses. The more detailed the itemized list the better. Once all of this is gathered a person can then file for bankruptcy. The filing for bankruptcy can be done with or without a bankruptcy lawyer in Mattoon IL.

What Happens Next?

After the petition is filed, then an automatic stay will go into effect. When an automatic stay goes into effect, creditors can no longer contact the debtor. In addition to that, if there are any foreclosure proceedings in process or pending they will be stopped automatically. A person cannot have their home foreclosed on after receiving an automatic stay.

After a person has received their automatic stay, a bankruptcy trustee is assigned. The primary role of the bankruptcy trustee is to assume communication with all of the creditors. Their responsibility is to try and get the creditors whatever money is possibly left over after a bankruptcy, so they receive as much money as reasonably possible.

Shortly after all of the communication has been coordinated by the bankruptcy trustee the next to last step of the bankruptcy process in California involves a meeting with all of the creditors. The debtor is required to attend the meeting. During this meeting, the bankruptcy trustee will provide all information on any liquidated assets and offer a settlement to the creditors. Once the settlement is reach, the debts will be considered settled. For a period of about six months, there is an opportunity for any of the creditors to make any challenges. If, after six months, there are no further challenges, the case will be closed.

Now all of this is just the basics of a foreclosure process in the state of California. Of course, a person does not have to know or understand everything about the foreclosure process but the more that a person knows the better and less stressful it will be. Filing for bankruptcy is not for everyone and there are also several different types of bankruptcy. A bankruptcy lawyer can of course advise a person on the appropriate actions.

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