Filing for bankruptcy can be a difficult decision, but it can also be an opportunity for a fresh start. However, it’s important to understand the rights and responsibilities that come with filing for bankruptcy. In this blog, we’ll take a look at what happens after filing and what you can expect.
Your Rights After Filing for Bankruptcy
- Automatic Stay:
After filing for bankruptcy, an automatic stay is put in place. This means that creditors cannot continue to collect debts from you, including phone calls, letters, or legal action.
- Discharge of Debts:
Depending on the type of bankruptcy you file, you may be able to discharge certain debts. This can include credit card debt, medical bills, and personal loans.
- Exemptions:
You may be able to keep certain assets, such as your home or car, by claiming exemptions. Each state has different exemption laws, so it’s important to speak with a bankruptcy attorney to understand your options.
Your Responsibilities After Filing for Bankruptcy
- Attend Credit Counseling:
Before filing for bankruptcy, you must attend credit counseling through an approved agency. After filing, you must attend a financial management course.
- Provide Financial Information:
You will need to provide detailed financial information to the bankruptcy court, including income, expenses, assets, and debts.
- Cooperate with the Trustee:
The trustee is responsible for overseeing your bankruptcy case. You must cooperate with the trustee, provide requested documents, and attend any required meetings.
It’s important to note that bankruptcy will have a significant impact on your credit score and will remain on your credit report for up to 10 years. However, it can also provide a much-needed fresh start and relief from overwhelming debt.
If you’re considering filing for bankruptcy, it’s important to work with an experienced bankruptcy attorney at Daniels Associates who can guide you through the process and ensure your rights are protected. Contact us today to schedule a FREE consultation and learn more about your options.
