The 7 Main Steps of Filing Albuquerque Bankruptcy
While the thought of Albuquerque bankruptcy may sound scary, in reality, bankruptcy is intended to give debtors a fresh start. It is a relatively simple process that your bankruptcy attorney can help you understand and feel comfortable with.
Here are the 7 main steps of the Albuquerque bankruptcy process:
- Have a consultation with an attorney: Your attorney can help you understand what to expect with bankruptcy, analyze your situation, and give you advice as to your best financial options for debt relief.
- Choose between Chapter 7 or 13: Depending on your assets (home, vehicle, etc), amount of debt, income level, and other factors, you should choose Chapter 7 or Chapter 13 to suit your needs. Chapter 7 is best to eliminate all debt but lose some assets, while Chapter 13 is best to keep your assets and create a payment plan over 3-5 years.
- File Chapter 7 or Chapter 13: Your attorney will help you fill out the paperwork regarding your assets, income, and other personal information required to file bankruptcy.
- An automatic stay protects you: This is where your stress levels go down dramatically. Once you file, an “automatic stay” prevents repossessions, collections, levies, garnishments, and foreclosures from occurring. Creditors must stop pursuing you for these things.
- Attend the 341 Meeting and Confirmation Hearing: The 341 meeting is with your attorney, creditors, and trustee (the person in charge of overseeing your case). It is mandatory but is not a court case. In it you verify your financial information and discuss any creditor concerns. The confirmation hearing is a court hearing for Chapter 13 cases only. In it creditors and a judge review your proposed payment plan and make any revisions that are necessary.
- Take a credit counseling class: Each state has a credit counseling class that is required. It is usually inexpensive (less than $100). In it you learn financial management techniques to budget and manage debt effectively.
- Debt is discharged or paid off over time: This is the best part. With Chapter 7 cases, your debt is completely gone after 3-5 months. With Chapter 13 cases, you begin your repayment plan with manageable debt payments for 3-5 years.
Hopefully you see that the Albuquerque bankruptcy process is relatively simple. It is an effective way to get a fresh start. Your Albuquerque bankruptcy attorney can help answer any of your questions and help you get started.
To see how we can help you, visit our Albuquerque bankruptcy home page.