Steps to Preparing for Bankruptcy: Tips from South Tulsa Bankruptcy Lawyers

Preparing your private insolvency begins with the assessment of your prospect of debt relief. South Tulsa Bankruptcy Lawyers look at their client’s case and then point out the next steps by creating their individual debt relief plan. After that, it is necessary to secure his or her unsecurable property.

For example, the lawyer will open a case file and then rigorously suspend payments to their client’s creditors. At the same time, the client should get an accurate overview of their debts so that his or her debt relief is finished quickly.

Initial steps

Lawyers support their clients by carefully checking his or her details according to legal principles. In addition, the attorney will contact the individual’s creditors and check public registers for forgotten debtors. Only when everything is carefully prepared will the lawyer begin the process. If this is not successful, the attorney will provide him or her with a bankruptcy application.

To complete the above process, lawyers usually need 6 weeks. Public debt counseling services usually take 1 to 2 years, mainly because they are very heavily utilized. Therefore, people will only receive an initial consultation period for a period of 6 to 9 months in the case of public debt advice.

Secondary steps

Private insolvency proceedings are normally opened about 5 weeks after the application has been submitted. As a rule, this procedure takes one year. To manage your assets, a trustee is appointed by the judge. He or she alone can use your attachable assets, while you can keep your own income unsecured.

Beneficial Period – 3, 5 or 6 years from the date of the proceedings

To achieve residual debt relief, debtors must complete a period of “well-being” after the client’s insolvency distribution. This starts after the proceedings are resolved and ends within:

  • 3 years – upon repayment of 35% of the debt and the procedural costs
  • 5 years – at the cost of the proceedings
  • Maximum 6 years – completely independent of any debt repayment

During this time, debtors are no longer dealing with the insolvency court. Their contact with the trustee is reduced to a questionnaire. Since their assets have already been utilized, he or she will not have to provide detailed information about any donation received.