Question: What is the first step in filing for Bankruptcy?
Answer: The first step is to look at your income and debts, decide whether or not you are able to pay your debts without being stretched to the breaking point, and then determine if bankruptcy is your best course of action.
Question: If I decide to go ahead and file for bankruptcy, how do I get started?
Answer: If you are not knowledgeable in the field of bankruptcy law or on how to go about filing a petition, the best thing to do is to contact an attorney who specializes in bankruptcy law.
Question: Where would I go to find an attorney who specializes in bankruptcy law?
Answer: Look in the yellow pages of your telephone book. There are literally hundreds attorneys who advertise, not only in yellow pages, but also in newspaper ads, television and radio ads, billboards, and even on the internet.
Question: Will I have to tell the attorney who all my creditors are?
Answer: The only way an attorney can help you in the best possible way is if you are honest with him or her about your income, your creditors, and to provide all other information that they request from you.
Question: If I owe back taxes, can they be disolved through bankruptcy?
Answer: Normally, taxes, child support, spousal support and certain other debts are not allowed to be included in a bankruptcy petition. Your attorney should be able to answer any questions you might have concerning unpaid taxes.
Question: How does the bankruptcy filing process begin?
Answer: The bankruptcy petition is filed in court and the court makes the determination if you are to be declared bankrupt.
Question: What happens if I am declared bankrupt by the court?
Answer: The court then appoints a trustee who will then collect and administer your property, sell your assets, if necessary, pay all administration costs first, and then pay your creditors with any monies that are left.
Question: Are there options other than filing for bankruptcy?
Answer: There are other options such as seeking the help of certified financial planners or certified public accountants. Financial planners, and or accountants, may be able to organize your debts in a way to stave off bankruptcy.