What Is A Bankruptcy Petition?

Are you considering filing for bankruptcy? If you’re drowning in debt, then it’s best to familiarize yourself with the bankruptcy process as well as the forms you need to file. Once you gather your debts, you need to contact a Brooklyn bankruptcy attorney to help you with the paperwork. Though some people try to file without a lawyer’s help, it’s an extremely complicated process that you can’t afford to mess up. 

Understanding the Bankruptcy Petition 

The bankruptcy petition is the initial document that is presented to the court. This is where you will disclose all your financial information and list any assets that you own. It paints a picture to the court that your income is less than you’re outgoing and that you need their help. 

It also has schedules that show the debts that you wish to eliminate. Once this paperwork is filed, you will be given a case number, and you’re officially under their protection. 

Chapter 7 or Chapter 13? 

During your initial meeting with your bankruptcy lawyer in Brooklyn, they will look at your incoming versus your outgoing financial obligations. If you have any assets or disposable income, then you will need to file a Chapter 13. A Chapter 7 is a complete liquidation and is usually reserved for those who have filed bankruptcy in the past eight years, who have no disposable income, and have no assets. 

Chapter 13 is a reorganization plan that helps you pay back your debts. Your bankruptcy attorney in Brooklyn will determine the amount you pay. The lawyer will do a series of paperwork and come up with an amount to present to the court based on your disposable income. The court will either deny or approve the plan. 

Stopping the Creditors with An Automatic Stay 

Once you file for the court’s help with your bills, they will send a notice to all your creditors informing them of the automatic stay, which is the official Form 309 Notice of Bankruptcy Case. This notice serves as an indication that you’ve asked the court for help, and you have filed either a Chapter 7 or a Chapter 13. 

The creditors can no longer contact you or continue with collection activity. They will need to direct any questions to your Brooklyn bankruptcy lawyer. The automatic stay routinely goes into place with the filing of your petition. This is beneficial if you’re facing wage garnishments, a foreclosure, or judgments. It will stop all collection activities immediately. The creditor cannot call, text, send you a letter or email, or proceed with any collections. 

The Meeting of Creditors 

The 341 Meeting of Creditors is where you and your bankruptcy lawyer Brooklyn appear before a judge. This meeting is mandatory, and it gives the Bankruptcy Trustee a chance to review your paperwork. Any creditors that object to the discharge of their debt can appear against you in this session. Generally, not many creditors show up to these meetings, and it’s just a formality. The 341 Meeting typically occurs about 21 to 40 days after the petition is filed. 

Getting Help Through the Bankruptcy Process 

As you can see, filing for bankruptcy is a complicated matter that requires knowledge in this area of law. At Ursulova Law, our lawyers can help you navigate the process with ease. We do all the work so you can stress less. As a bankruptcy attorney Brooklyn, we understand that this time can be scary, and it’s difficult enough to deal with financial difficulties. 

We can answer any questions you might have and stop any lawsuits, liens, wage garnishments, and debt from weighing you down. Schedule an appointment for a consultation to see which Chapter is right for you.