Tips To Choosing The Correct Bankruptcy Form
If you or your business is planning to file for bankruptcy, ensure that you are petitioning for the right protection. You can review the six types of bankruptcy under the United States Code, and carefully go over Chapters 7, 11 and 13. These are the most commonly used provisions for individuals and businesses under the US Bankruptcy Law.
If you do not know which bankruptcy form to use, you may go over the guidelines below:
(1) Given the different types of bankruptcy, you should consult with a lawyer who can ensure that you are filing the correct bankruptcy form applicable to your petition;
(2) Bankruptcy forms differ by state, so ensure that your forms are the right ones, valid and approved by the court. These may be downloaded online or you can get one from your lawyer, during your consultation; (3) Once you have prepared all the necessary documents (schedules on you assets and liabilities, current income and expenditures, statement of financial affairs, and unexpired leases and executory contracts) together with your bankruptcy form, be sure that your lawyer examine it first before you finally file these with the court serving your area of residence or area of business organization; (4) Be prepared to accurately answer the questions found in the bankruptcy forms. If you are not sure, discuss these with your lawyer, you can ask about the different aspects of each bankruptcy form as well as the different questions posted; (5) Be aware that bankruptcy forms are very lengthy, with many pages of questions and information which you must fill out. While looking through the forms, you may encounter some forms which state that you do not need a lawyer. Be cautious with this kind of advice since the terms used in bankruptcy forms can be very confusing. To avoid any problems which might lead into worsening your financial situation later on, it is best to consult with a bankruptcy lawyer; (6) You can also hire a paralegal if you do not want a bankruptcy lawyer. This option is a lot less expensive compared to hiring a lawyer. Your paralegal can send you intake forms which you will need to fill out and will be the one to input all information you provide to the bankruptcy forms (same as what you provide if you hire a lawyer or when you do it yourself). But, your paralegal can ensure that your bankruptcy forms are correctly and accurately filled-out, thereby minimizing delays or having your case dismissed by the court due to missing information. However, you will have to represent yourself at the court, since only lawyers can represent you. Given these guidelines, it is always a good idea to have a specialist with extensive experience to assist you in determining which bankruptcy form to file as well as in having assistance filling out these forms, thereby avoiding settlements which may be disadvantageous to you later on. Moreover, once you have concluded the filing of your bankruptcy form, find out what will happen to your bankruptcy claim.
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