Collect All Bills

When it comes to getting prepared for the first consultation with a bankruptcy law attorney, the first thing you have to do is to collect all your bills. In order to be able to evaluate your case thoroughly, the lawyer will need all necessary bills that may include court summons related to debts, descriptions of outstanding taxes, medical bills, and bills from collectors and creditors. Besides that, you must also carry proofs of all paid bills that may include confirmation numbers, cancelled checks, cleared checks, and bank statements among others. If you have already settled some of your debt accounts, you must bring the related documents of those settlements.

Obtain A Credit Report

The lawyer will also like to look into your annual credit report in order to get a better picture about the kind of financial situation you are currently in. There are three major agencies that prepare and maintain these reports for consumers. These agencies are – TransUnion, Equifax, and Experian. As per the laws applicable in the United States of America, all consumers are entitled to get at least one free credit report from each of these agencies every year. So, this is the time to get one. If you have already obtained a report earlier, you may be charged a certain amount of fee for another report.

Document All Your Monthly Living Expenses

The bankruptcy attorney in Atlanta will also need to look into the details of your monthly living expenses that should include things like grocery costs, transportation, utilities, and housing expenses. It will be better if you also include the estimates of some personal upkeep costs also, such as haircuts.

Complete The Basic Paperwork

You are likely to be asked to complete some basic paperwork before the appointment. So, make sure you fill out all those documents in advance, which the lawyer may need during the meeting. Generally, these documents are detailed reports of your assets and debts. Some lawyers may even ask you to fax all these documents before the appointment so that they can do a thorough analysis beforehand and suggest you the best legal options during the meeting.

Overall, all these preparations will make it very easy for you get the best legal advice from a bankruptcy attorney in Atlanta.

Involuntary Bankruptcy

When the creditors with an objective to recoup the money they have lent to debtors are filing bankruptcy against the individual or organization, it is termed as “involuntary” bankruptcy.

Voluntary Bankruptcy

On the other hand, when the individual or organization that owes huge debts file a bankruptcy petition themselves, it is termed as “voluntary” bankruptcy.

Rehabilitation Or Reorganization Bankruptcy

The reorganization bankruptcy provides the debtor an opportunity to survive insolvency, as they are allowed to carry on with their venture. All they have to do is to reorganize their debts and the available means in a way to partially satisfy their various creditors’ claims. The bankruptcy court may also suggest or demand a repayment plan from the individual or organization that how they are going to achieve this. This type of bankruptcy is also known as Chapter 11, 12 or 13. All of these chapters allow the debtor to continue with their business operations, but they are obliged to pay off their debts partially on a monthly schedule basis. Chapter 11 and 12 provides the liberty to the individuals and the business debtors to reorganize their assets and means in a way to regain control of their finances and make arrangements to pay off the reduced claims of the creditors simultaneously.

On the other hand, chapter 13 bankruptcy rules state that a trustee will be appointed that proposes a repayment plan for the debtors, which the debtors are obliged to follow. The debtors are also required to pay a substantial amount of money to the trustee as fee. The greatest advantage of filing for bankruptcy of this type is that it allows you to remain in the specific business venture you are running while you get enough time to repay the reduced claims of the creditors. For example, if the total amount of debt you owe is $10,000 and the court allows you to pay 75 cents on each dollar, you will only have to pay $7500. What is more, you can repay this amount in monthly installments as described by the proposed plan of chapter 13 or the common arrangements you make with the consent of the creditors. You are supposed to make the repayment from your bankruptcy attorney’s office. Once you pay off all of these reduced claims, the court will issue you a bankruptcy release.

Liquidation Bankruptcy

On the other hand, the liquidation bankruptcy, as the term suggests, leads the debtor to insolvency that involves selling off their assets in order to satisfy their creditors’ claims to the maximum possible extent. The liquidation bankruptcy is also referred to as Chapter 7 of bankruptcy laws. As per this chapter of the bankruptcy laws, a trustee is appointed to review the assets and other financial means available to the debtors. All of these assets are seized and then sold off by them in an effort to pay the creditors the maximum amount of debts as possible. Because of its nature, filing bankruptcy of this type is also termed as “Straight bankruptcy” by many. Find a chapter 7 bankruptcy attorney to get started with the process.

On the other hand, the chapter 13 leaves some scope for the debtors to continue with their existing business venture while repaying the reduced amounts of debts simultaneously as per the repayment plan as suggested by the bankruptcy court.

Hiring An Attorney

No matter which type of personal bankruptcy you are considering to go for, it is very important for you to find a good resource on iva’s, overview what you need and hire the best bankruptcy attorney to handle your case. When debts cross its limit, they become a huge burden and eventually result in mental harassment. You lose peace of mind and the collection calls contribute more in this mental harassment. In such cases, where no alternative option is available to you, filing for personal bankruptcy may make a good choice for you. By hiring an expert and experienced personal bankruptcy attorney who can ensure you your estate, you not only ensure a guaranteed freedom from financial and mental harassment, but you also get an excellent opportunity to make a fresh beginning.

The Reason For Filing Personal Bankruptcy

There can be a variety of reasons to file for personal bankruptcy, such as accidents, sudden illness entailing major medical expenses, child support expenses, divorce proceedings, credit card misuse, and much more. A chapter 13 bankruptcy attorney will first look into the reasons that forced you on the path of bankruptcy. The lawyers will study your case and they will get a solution for you on the basis of the facts and figures that pushed you towards this difficult and painful situation. Therefore, you should not try to hide any facts from your lawyer. Always remember the popular saying that one should never tell a lie to a doctor, teacher, and a lawyer. Any such attempt from your part will make your case weak and it will create unnecessary complications for you.

You also need to understand that you cannot hire a business bankruptcy attorney to handle bankruptcy cases of individuals because they are specialized professionals to handle only business cases. The specialization of the lawyers matters a lot. For individual cases, the right choice is to hire a personal bankruptcy attorney.