Steps to Take When Filing For Bankruptcy


If you are part of the financially strapped unsecured creditors committee, know that you can hire a bankruptcy law firm to handle your committee without ever paying a dime out of your own pockets. Even you can’t afford to delay on getting the counsel you need today. This is because many people are getting cheated by fraudulent debt settlement companies. These companies just want to take advantage of people’s desperate situation and run away with what they can. To ensure that you get the best counsel and avoid getting scammed, do the following:

Research the backgrounds of each of your prospective attorneys. Meet with them personally to discuss your case. Do not allow them to pressure you into anything. As the creditors’ representative, it is your duty to educate them about the advantages of settling with the creditors rather than going for a trial.

Meet with every legal services provider that you can find. Of course, this depends on how many debtors there are. It would be best to get at least three different providers because you might want to ask for an estimate on legal services. Some attorneys offer only the basic service of filing for bankruptcy. Others provide expert consultation such as in-depth analysis of debtors’ financial situation and their ability to pay.

Enlist the help of your local bankruptcy law firm in the collection of unpaid debts. Collection activities include sending constant letters and making repeated phone calls to debtors. These efforts should halt once you start paying the creditors.

Once you hired a bankruptcy attorney or a service provider, ensure that they are well-informed about the workings of the creditor committee. The creditor committee is responsible for approving or rejecting all proposed debt relief measures. It is advisable that you ask for the names of the creditors and the directors of each company or organization that you want to deal with. Your local bankruptcy attorneys and service providers should be able to provide the information you need.

After you and your local bankruptcy law firm have determined that you will file for bankruptcy, keep in close contact. This will help both you and your creditors know that you are still serious about resolving the debt problem. Communicate regularly with your legal providers to schedule and arrange meetings. Once all your arrangements are finalized, you will then submit your application to the court for approval. If you want to know more about this you can click on the link Arizona bankruptcy attorney.

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