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We all know times are tough
and, for some of us, bills are getting harder to pay each
month. If the debts you owe are more than what you can
afford, you should read on.
Filing a bankruptcy can be
the answer to your problems. A bankruptcy is a way to
discharge your debts completely so you can have a fresh
start in your financial and personal life. You can only
file a bankruptcy once every 6 years and once filed, it
can become part of your credit history
Before filing, you want to
know two things: 1) that your monthly expenses (i.e. rent,
phone, medical payments and just about anything else paid
by you for the living expenses of you and your family) are
more than your monthly net income and 2) that your assets
(all property you own at its current market value) are
worth less than your liabilities (that is, the debts you
presently owe and that you will list in your bankruptcy
petition).
The next step in filing a
bankruptcy is to have the actual petition prepared. The
petition is an extensive document listing all of your
income, assets and liabilities as well as other
information with respect to your financial history. You
must list all of the creditors that you owe money to and
want to be discharged from that debt. Any creditor that
you do not list will always remain your creditor. For
example, you may want to keep one of your credit cards if
you do not list that credit card company on your petition
then you can continue to use that line of credit (of
course, you will continue to make your monthly payments
for that credit card).
Your petition will be filed
in the bankruptcy court for about a $150.00 fee. The
moment your petition is filed an automatic stay is in
place that means your creditors listed in the petition
must stop their collection procedures during your
bankruptcy proceeding.
Only those creditors you
list in the petition will be notified with respect to your
filing for bankruptcy. In about 30 days from your filing
date, you will be scheduled for a first meeting of
creditors (called a section 341 meeting). At that meeting,
the bankruptcy trustee (the person from the court) will
ask you some questions. The trustee is interested in
discovering whether you have any property or assets
available for the benefit of your creditors. By law, you
are allowed to keep certain property and the trustee's
questions are very straightforward and not at all
intimidating. When the trustee is finished, your creditors
are given an opportunity to speak. If none of your
creditors appear then an additional 60 days is set for
anyone to make any objections or file any additional
papers. If nothing happens in that 60 day period, your
bankruptcy will be granted and you will be relieved from
all debts listed in your petition.
This article is certainly
not all inclusive and is intended only as a brief
explanation of the legal issue presented. Not all cases
are alike and it is strongly recommended that you consult
an attorney if you have any questions with respect to any
legal matters.
Any questions and/or
comments with respect to this topic or any other topic,
contact:
http://www.appellate-brief.com
Law Offices of Susan Chana
Lask
853 Broadway, Suite 1516
New York, NY 10003
(212) 358-5762
Susan Chana Lask, Esq. c
2004
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