WORD COUNT: 444KWD: 1.80 Process Of Filing A BankruptcyBankruptcy Allows Individuals Or Businesses Who Are In Debt To Others For More Money Than Theyre Able To Pay, To Either Work Out A Plan To Repay The Money Over Time Or Completely Eliminate Most Of The Bills. The Process Of Bankruptcy Is Not That Easy And Simple, But With Proper Treatment Of The Issue And Scenario, The Bankruptcy Process Would Not Be Complicated.The Bankruptcy Process Is Simplified In The Following Manner: Gathering Paperwork, Filing Bankruptcy, Automatic Stay, Bankruptcy Trustee, Meeting Of Creditors And Plan Confirmation. Gathering Paperwork Is The First And Yet Most Essential To Begin With Filing A Bankruptcy. One Must Itemize His Current Income Sources; Major Financial Transactions For Two Years; Monthly Living Expenses; Debts, Both Secured And Unsecured And Property Which Includes Not Only Real States But All Assets And Possessions. One Should Also Collect His Tax Returns For The Last Two Years, Deeds To Any Real Estate Owned, Car Titles And Documents For Any Loan.Once The Necessary Documents Are Gathered, One Should Then Determine Which Property Is Exempt From Seizure Based On Exemptions. This Is The Point Where In Bankruptcy May Be Filed. In Filing Bankruptcy Either The Person Involved Or His Counsel Will Need To File A Two- Page Petition And Several Other Forms At A Bankruptcy District Court. These Forms Are Referred To As The Schedules And Ask One To Describe His Or Her Current Financial Status And Recent Financial Transactions. If The Creditors Or The Judge Feel Or Find Out That You Have One Have Not Been Entirely Imminent In The Bankruptcy Filing, It Could Jeopardize The Outcome Of The Petition. When The Gathered Paperwork Has Been Filed With The Bankruptcy Court, An Automatic Stay Immediately Goes Into Effect. This Provision Prevents Creditor From Making Direct Contact To The Person Filing For Bankruptcy, Or Staking A Claim On Any Of The Property Of The Person Involved. In Addition, This Will Stop Any Foreclosure Proceedings. Upon Filing Of Bankruptcy, The Court Will Assume Legal Control Of The Debts And Property Not Covered By Exemptions. A Trustee Will Be Appointed By Court To See That Creditors Are Paid As Much As Possible. The Trustee, Furthermore, Will Systematically Review The Paperwork, Particularly The Assets. The Trustee Could Also Challenge Any Element Of The Bankruptcy Case. After A Month Of Filing, The Trustee Will Call For A First Meeting Of Creditors, This Is Also Referred As 341 Meeting Of The Creditors. Objections Are Typically Resolved By Negotiation Between The Debtor Or The Debtors Counsel And The Creditor. If A Compromise Can Not Be Reached, A Judge Will Intervene.
