Do You Have Questions About Bankruptcy? We Have Answers.
The bankruptcy process is filled with red tape, bureaucracy and regulations. You must cope with not only the emotional strain of filing bankruptcy but also the many complicated steps.
The team of attorneys at Mahaffey & Associates, LLC, want to help you. With years of experience under their belts, they have helped numerous clients find financial relief through bankruptcy solutions.
Here, we have answered some of our clients’ most frequently asked questions about bankruptcy.
What Are The Steps To Filing Bankruptcy?
- First, you must file a petition for bankruptcy with your local bankruptcy court.
- Then, the court will impose a stay that prevents creditors from harassing you and also stops any foreclosure actions.
- You and your lawyer will meet with a bankruptcy trustee to discuss your debts.
- Before the court grants your petition, you must take credit counseling courses.
- Finally, the court will grant your petition to discharge or rearrange your debts.
What Are The Most Common Reasons For Filing Bankruptcy?
It is a common misconception that bankruptcy results from irresponsible spending. While consumer debt is indeed one cause of bankruptcy, there are also several others. These include medical bills, the loss of a job, a failed business, a divorce and other crises.
What Is The Difference Between Chapter 7, Chapter 11 And Chapter 13?
- In Chapter 7 bankruptcy, consumers must liquidate their assets and then the court will discharge their eligible debt.
- Chapter 11 allows businesses to reorganize their debts and assets.
- Finally, Chapter 13 allows debtors to create a repayment plan to repay creditors within three to five years.
How Long Does It Take To File Bankruptcy?
Every case is different and depends on many factors. Generally, a Chapter 7 case takes four to six months to finalize, but they can stretch on for several more months. Chapter 11 and Chapter 13 cases can take even longer.
Ask More Questions To A Bankruptcy Attorney
You do not have to go through bankruptcy alone. Work with our compassionate team. To ask more questions to a lawyer, schedule a consultation with Mahaffey & Associates, LLC. You can reach us online or call (419) 827-5008 to get started today.
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