How to File for Bankruptcy in Rhode Island
When you have more debt than is possible for you to repay, filing for bankruptcy may be your best option.
Are you struggling because of too much debt? Are you unemployed and are your savings not enough to settle your bills with multiple creditors? Has it been already affecting your life, your relationships with your family, friends, and peers? Does it feel as though Doomsday has fallen upon you? Think again, this is not the end of the world for you. Perhaps, filing for bankruptcy can help you.
Chapter 7 Bankruptcy
When filing for bankruptcy, hiring the services of a reputable lawyer will help you cover everything. But definitely, you also need to educate yourself on Chapter 7 bankruptcy so you know the limitations and your responsibilities as an applicant. There are different types of bankruptcies that are available to thousands of debtors all over the United States but the most common is Chapter 7 bankruptcy. The process of filing for Chapter 7 bankruptcy takes at least three months. During the application, you can choose if you want to apply for yourself or with your spouse. However, the most important factor before the court considers your case is your properties which include real estate, cars, financial accounts, and others. The next step would be the listing of all the names of your creditors. It is mandatory that you give the names of the persons and institutions that you owe money from, otherwise it will not be covered by your bankruptcy declaration. Thirdly, you should be able to prove through documents and written certification from your employer that your income is not enough to cover your monthly expenses. Applying for Chapter 7 bankruptcy is not at all easy because first, you have to prove that despite your best efforts, your financial gains cannot pay off your debts.
Your bankruptcy attorney should be able to provide some sort of protection from all your declared properties. And although in most cases, not all of these properties are seized by the insurance company or your creditors, there may still be come exemption. The procedure starts by computing for the median of your gross income of all sources for the past six months, not including your social security contributions. A standard bankruptcy petition is usually 50 pages long or more and when it is filed with the Department of Insurance, it normally takes a little more than three months.
During this process, all the collection activities of your multiple creditors must stop until the day that the court releases the results of your application. You must attend the schedules of your hearing which typically takes place a month after the filing. At the hearing, the trustee will ask you a series of questions in which your bankruptcy lawyer should have briefed you long before. Each session is reasonably short and when all the hearings are over, you will have to wait up to 60 days before the court concludes whether or not you will be discharged of your debts. The waiting period should be quiet but if any issues occur, you must consult with your lawyer immediately.