Bankruptcy Preparation

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Below we have provided answers to many of the common questions that we are asked by our clients regarding what they will need to do to prepare for filing a bankruptcy. If you would like more information please do not hesitate to call us at 508.655.5980 or e-mail us.

What should I expect at the initial consultation?

The initial office visit is intended to acquaint you with basic information about bankruptcy and to assess your current financial situation in order to determine your need and eligibility for the filing of a bankruptcy case.

This will include information about the types of bankruptcy provided by each of the Chapters and how each Chapter works, what types of debts can be forgiven, what property you can keep, what debts you need to keep paying, how to value property in bankruptcy and how to complete the petition, forms, plans, schedules of property, and schedules of your debts. As part of this process, Kelsey & Trask, P.C. will evaluate your financial situation to determine your need and eligibility for the filing of a bankruptcy case.

How do I decide when to file for Bankruptcy?

Factors regarding the need to obtain an automatic stay will likely be dictated by your creditors, not you. The automatic stay is a useful tool in temporarily stopping foreclosure proceedings brought by your mortgage holder(s), as well as collection efforts, collection calls and lawsuits filed by your creditors, if any. This foreclosure and debt collection process generally takes a few months, not a few days, and the benefit of the automatic stay can create some additional time for the debtor to deal with logistical issues associated with preparing the bankruptcy petition, appraising assets, selling real property or finding new housing, if necessary.

In order to file for bankruptcy under any section of the Bankruptcy code (Chapter 7, 11, or 13), your federal income taxes must be filed up to the current year (2008). Other documents are necessary for preparing the bankruptcy petition and schedules, such as a credit report, current credit card statements, bank statements, and income information. If this information is not immediately available, it will take some time to collect and review. If you believe a bankruptcy filing is on the horizon, your best bet is to contact an attorney for a bankruptcy planning consultation, then begin preparing the information needed to file.

Equally important in deciding when to file is a debtor's own ability to handle the current situation, balanced against their need to make immediate changes. Some debtors will need time to prepare for relocation to an apartment or smaller home, whereas others will be anxious to take action to save their house or get a fresh start. These factors are unique to each case, and should be discussed with an attorney before filing your bankruptcy petition.





                   Click here to learn more about the documents you will need to file bankruptcy.