Bankruptcy- An Administrative process
People engorged in debt often fear bankruptcy because they have little understanding of the law and its intention. In 1978 congress enacted the bankruptcy code and several amendments have been added and removed since this passage. The latest change was in 2005 which now includes pre bankruptcy counseling and post bankruptcy counseling.
The fear of filing bankruptcy typically causes the normal law abiding person to be nervous or even scared to have to go to court or even the thought of having to face a bankruptcy judge keeps debtors paralyzed or incapacitated to finding remedies to rid themselves from their debt and the debt collector. In addition to fear of court, people have been trained by the last great depression and by credit card lobbyist that filing bankruptcy is a moral issue and is ultimately wrong. Yet, the common person would not think anything bad about someone like Donald Trump filing bankruptcy and then rebuilding his empire. However, the average person should be shamed about filing according to the bankruptcy court.
If people would take the time to meet with a bankruptcy lawyer they would soon realize that more than likely they would not have to face a judge and the only appearance they would have to make is at the federal court house where they will attend a meeting of the creditors commonly called a 341 meeting. This meeting typically lasts 5-10 minutes with 10 being a little long. The questions are basic questions and are no different than questions you be asked on an application of any kind or questions that you be asked if taking a survey.
The bankruptcy process is mostly paper work and hiring the right attorney that will make sure they submit the required paper and make sure you are providing everything the court needs to allow for a discharge of bankruptcy. Since associating with several michigan bankruptcy lawyers I have been told the largest problem and hold up with a bankruptcy is failure on one of the parties not to provide all the required documentation and competing all the necessary bankruptcy forms. It paper work problems in bankruptcy not discharging debt; it’s all administrative.
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