One of the first steps a person needs to take when debt arises is to seek help from their creditors. Sometimes, creditors are willing to work out payment arrangements to help individuals get caught up on their payments in arrears. If the creditors are unwilling to budge, an individual should consider seeking the help of a bankruptcy attorney.
Scheduling the First Meeting
It can be a little intimidating to schedule the first meeting with an attorney to discuss bankruptcy. Individuals often feel a little nervous and wonder what they can expect from the meeting. Being prepared for the meeting is one of the most important things a person can do to get started.
Bringing in all of the important financial documents is important. The attorney will want to see the tax returns, wage statements, asset information, and information on all creditors. The attorney will likely send a list of requested items before the meeting is scheduled so the individual will be prepared.
The first meeting will likely take under an hour. The individual will speak with their attorney as the attorney goes over the supplied documents and asks questions. The attorney will then offer information that will help the individual make the right choice for their bankruptcy needs.
Types of Bankruptcy
There are two types of bankruptcy options for couples and individuals to file. Meeting with an attorney will allow an individual to learn which type will be best for them to file for their debts and income. The two bankruptcy types are as follows.
- Chapter 13 is primarily for homeowners who are dealing with the possibility of foreclosure. This bankruptcy option allows people the time they need to pay off their debts, while all collection activity is stopped. Most people are given three to five years for this period.
- Chapter 7 is a bankruptcy option for those with unsecured debts. Some assets are liquidated to pay off the debts that are owed. The period for this type of bankruptcy is typically around six months.
If you feel like you are drowning in your debts, you are not alone. Get the help you need by calling an attorney today.