The Steps To Bankruptcy

Many people seeking debt relief turn to the internet for a quick search of debt relief solutions. Often, people are guided towards various debt management and debt settlement options that may not be the best option for their financial situation. Although some people readily seek bankruptcy, many other people may hesitate to seek bankruptcy relief simply because they do not understand the process. Here is a brief overview of what to expect throughout the bankruptcy process:

Filing the Bankruptcy Petition: The bankruptcy petition is the legal document that allows you to begin the bankruptcy process. It is filed with the court and informs the court that you want to begin a bankruptcy case. The petition must include a number of specific pieces of information, including your income, assets, and debts.

The Meeting of Creditors: In the case of a bankruptcy, the first step in the process is a meeting of creditors. This is an opportunity for the representative of the company to present an outline of the company’s financial situation to the creditors. This meeting provides you the opportunity to tell the court and your creditors about your income, expenses, assets and debts. You will also have to answer detailed questions about your finances. At the meeting of creditors, you will be required to appear before the court to answer questions regarding your bankruptcy case.

The Confirmation Hearing: After evaluating your income, expenses and debts, the court may decide that your debts are too much for you to pay back. If the court determines your case will proceed, the court will make a bankruptcy order to make the bankruptcy plan official. The hearing is held by the bankruptcy trustee or the debtor in bankruptcy. At the confirmation hearing, the bankruptcy trustee will ask the bankruptcy judge to approve the bankruptcy plan.

The Trustee: A bankruptcy trustee is a court appointed person who administers the bankruptcy estate. The trustee is responsible for the management of the bankrupt’s estate, including the collection and distribution of money in the estate. The trustee will take charge of your property and the distribution of non-exempt assets.

The Confirmation Order: A confirmation hearing is held after a proposed plan of reorganization has been filed with the court, but before the court approves the plan. A confirmation hearing is an opportunity for a judge to confirm that the debtor’s proposed plan of reorganization is fair and equitable to all of the creditors of the case. This means that your bankruptcy case has started and undergoing resolution.

The Debtor Education Course: In a bankruptcy case an individual will have to take a course about how to manage your money. A debtor education course is a requirement of the bankruptcy law that must be completed prior to completing a bankruptcy case. The debtor education course is designed to help debtors understand the basics of personal bankruptcy and how to avoid financial pitfalls in the future.

For more answers to your questions about bankruptcy, call a Modesto bankruptcy attorney at 916-459-2364.