Not everyone is the best candidate for bankruptcy. In this video, Margaret Henehan from Kain + Henehan provides valuable insights into the step-by-step procedure of filing for bankruptcy. She begins by explaining the importance of an initial free consultation, which helps determine bankruptcy eligibility and if is the right option. You will also learn if it should be filed under Chapter 7 or Chapter 13.
She details the critical stages, such as gathering essential documents like pay stubs, tax returns, and debt statements, to prepare for the next phase. The client will then engage in a thorough meeting, compiling and signing approximately 60 pages of bankruptcy paperwork before the case is filed. Once filed, there’s an immediate cessation of creditor contact, ensuring peace of mind.
She further discusses the specifics following the filing, including the mandatory meeting of creditors, which is now conveniently conducted via phone or Zoom. This transition to virtual meetings has streamlined the process, making it accessible and convenient.
Transcript:
Yeah, so I think the best candidate for a bankruptcy is someone that has been paying their debt usually for two years or so and are not making progress. Just paying minimum balances, nothing is going down on principle, someone that maybe has already tried debt consolidation or they tried 401K loans and they just haven’t been able to make any progress, usually, I see those as a good candidate. They’ve tried everything on their own. No one seeks bankruptcy as a first choice when they run into debt problems. They do try a lot of different options beforehand. Obviously, you don’t have to. I love it when people don’t have 401K loans taken out to pay their debts or second mortgages to pay their debts. Usually, it’s someone that struggled with debt for a few years, someone that has just racked up credit cards in the last few months and then turned to file bankruptcy sometimes might not be as good of a candidate because we want to make sure that there isn’t debt that’s been taken out quite recently just to be discharged in the bankruptcy. Usually, it’s someone that has struggled with debt for a longer timeframe.
Contact a Bankruptcy Attorney Today
If you are overwhelmed by debt and seeking a path to financial freedom, Kain + Henehan is here to help! Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form. Let our experts guide you through the process with personalized attention, ensuring a smooth and hassle-free experience.
