Financial hardships can happen suddenly through no fault of your own. Job loss, medical emergencies, divorce, and other circumstances out of your control can quickly lead to increasing debt. Once you are in over your head, it can be hard to dig out, but with help it’s possible. Filing for bankruptcy in Nebraska can help you eliminate many debts and, in some cases, buy you time to pay off pressing debts. You may have considered it in the past, but you really don’t know where to start. Below, our Omaha bankruptcy attorney answers common questions about bankruptcy to help you start your journey to a fresh financial start.
How Does Bankruptcy Work?
There are different types of bankruptcies with similar goals in mind: to discharge debts and in some cases allow those seeking bankruptcy more time to pay their debts. Individuals (and couples) file bankruptcy under chapters 7 or 13 of the bankruptcy code.
Bankruptcy is highly regulated by federal law from the rules and procedures to the fees. There is a lot of paperwork involved and the administration of bankruptcy cases is overseen by trustees appointed by the bankruptcy court. The laws and processes were established by Congress to help people to get out from overwhelming debt and have new opportunities in life free from financial burdens.
Once you decide a bankruptcy is right for you, that you have debt you cannot pay and that you need relief from those debts, you determine which bankruptcy process is best for you. You will discover this by calling a bankruptcy lawyer in Omaha for a free consultation. They will ask you some questions to determine your amount of debt and your eligibility for bankruptcy and which type you can file.
Next, the attorney will guide you through the paperwork and the filing process. They will submit documents and fees to the court. You will complete education required by the court. Once the bankruptcy is filed, you will have a hearing with the trustee. At the conclusion of the process, your debts will be discharged (chapter 7 bankruptcy) or you will have a payment plan established (chapter 13 bankruptcy) where remaining debts are discharged after you pay for 3 to 5 years.
What is the Role of an Omaha Bankruptcy Attorney?
Bankruptcy is complicated and there are many rules that must be followed properly to protect you and your assets from any future harm. An experienced Omaha bankruptcy attorney will be able to do the following:
- Provide you a free consultation and determine whether you can file bankruptcy and what type of bankruptcy applies to you.
- Let you know which of your debts you will be able to discharge with a bankruptcy.
- Help you to navigate the forms and documentation required for your bankruptcy.
- Take care of all creditor calls, once you retain them, and handle any lawsuits or garnishments if necessary. Tell you which debts you can stop paying due to starting the bankruptcy process.
- Help you to retain as much of your property as possible by utilizing the exemptions provided by state and federal. Protect as much of your money, including tax refunds, as allowed by law through exemptions.
- Complete and file all paperwork required by the court. Pay all court required fees as part of the all-inclusive fee that you are charged by the firm.
- Prepare you for the hearing with the bankruptcy trustee and attend the hearing.
- Finalize your bankruptcy and help you to get back any money owed to you from creditor garnishments.
- Provide you with free education to help you with a fresh start in the future, including how to check your credit reports to prevent fraud/identity theft. Give you information on how the bankruptcy will affect your taxes.
You may be tempted to try to file bankruptcy on your own. You have debts and you don’t know how you might be able to pay an attorney to file bankruptcy. But an Omaha bankruptcy lawyer will play a vital role in your bankruptcy and help to protect you and your finances. The US Bankruptcy Court says that the advice of an attorney is “strongly recommended” because of the “long-term financial and legal outcomes” from a bankruptcy.
What Questions Should I Ask an Omaha Bankruptcy Lawyer?
- What kinds of bankruptcy cases does the firm work on?
- How many cases does the firm file a year? How much experience do they have filing bankruptcy cases?
- Which of your debts can be discharged?
- What type of bankruptcy do you qualify for?
- What documentation do you need to file your bankruptcy?
- What is the firms fee to handle your bankruptcy case?
- Does the fee include all court costs and required education? Does it cover credit reports?
- Will the firm be able to help you with any lawsuits that arise from creditors? Do they handle creditor calls?
- Can they help you stop a wage garnishment? Will they work to get your money back? Is that an additional fee?
- How will the bankruptcy affect your tax filing?
When Should I File Chapter 7 Bankruptcy?
If you have debts as an individual or couple that you cannot pay, you should consider bankruptcy. If you are in a lower income bracket or are unemployed, a chapter 7 bankruptcy is likely your best option. Everything will depend upon your unique circumstances and it’s best you review your case with an Omaha bankruptcy attorney. A chapter 7 bankruptcy may require you to surrender, give up, or sell assets to pay off debt. But it can also eliminate certain debts like medical debt and credit card debt. Again, depending on your situation it may be the fastest and easiest way to discharge your debts.
When Should I File Chapter 13 Bankruptcy?
The reasons for filing a chapter 13 bankruptcy are similar to those for filing a chapter 7 bankruptcy. You have debts and you are unable to pay them. However, in the case of a chapter 13 bankruptcy, you have a steady income and can afford to pay at least a portion of your debt back. A chapter 13 will allow you to keep your home and catch up on your mortgage payments. It may also help to extend the time you have to pay for other loans, such as a vehicle loan. A chapter 13 bankruptcy helps you to keep your assets and pay them off over time. It is a payment plan that lasts from 3-to-5 years depending on your situation. An Omaha bankruptcy attorney can tell you if this is the right choice for you based on your individual circumstances.
Call (308) 872-8327 for a free consultation to see which bankruptcy best fits you.
Contact the Experienced Omaha Bankruptcy Attorneys at Steffens Law Office
At Steffens Law Office, we specialize in bankruptcy law. So, we know the law and the bankruptcy process well. We have experienced bankruptcy attorneys assisted by a staff of understanding and compassionate case managers. If you need help to get out from overwhelming debt, call our office today for a free consultation. Our Omaha bankruptcy lawyers are standing by ready to help you! Call (308) 872-8327 to get started towards a fresh financial future.