There is no doubt that bankruptcy is the only practical solution in many situations. When people have tried every other strategy for regaining control of their finances and nothing works, talking with a bankruptcy attorney is the only prudent approach. During that consultation, the debtor will learn All About Filing Bankruptcy, including what the court will expect before the action is approved.
Financial Counselling and Classes
Applicants are required to attend financial counselling and classes as part of the bankruptcy process. The idea behind this requirement is to ensure the debtor is equipped with the knowledge and skills needed to manage finances to better effect in the future. When explaining All About Filing Bankruptcy, the attorney can provide information about classes that are recognized by the court, and what it will take to register for those classes.
Financial Disclosures
Some people think that filing for bankruptcy requires nothing more than handing over a list of debts and leaving the rest in the hand of the attorney. The process is more involved and does require active participation by the debtor. Along with complete data about current debts, the applicant must also provide accurate information about all sources of income. The court will also want information about any assets that the applicant happens to own. Some of those assets may be considered eligible for sale under the direction of the court, which will then distribute the proceeds to creditors before dismissing the remaining debt.
Working with a Trustee
Assuming the client does meet the basic criteria set by the court, a trustee is assigned to the case. The work of the trustee is to verify the data provided in the bankruptcy petition and also find out if there was any information the debtor failed to provide to the court. Assuming the trustee finds that the debtor did make full disclosure to the court, the odds of recommending the approval of the bankruptcy action are quite high.
The goal of the attorney is to make sure the client understands what to expect with the bankruptcy action. If after learning All About Filing Bankruptcy the desire to proceed is still there, then the attorney will initiate the process and the client can get to work on meeting the requirements put in place by the court.
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