Filing bankruptcy as a freelance trucker can give you the clean slate you need to get out of debt and focus on your financial future. There are many reasons why a freelance trucker may have to declare bankruptcy. It can be challenging to navigate bankruptcy laws alone. Here are some tips for how to navigate the process.
1. Choosing the Chapter
Bankruptcy laws are governed by different Chapters of the law. For example, a Chapter 13 “wage earners” plan is designed for wage earners who can make monthly payments to a trustee to wipe out their debt, according to NOLO. Chapter 7 bankruptcy, named after the Chapter 7 codes, doesn’t require repayment of debts monthly, but it does require that you sell off assets and pay back creditors through those sales.
An attorney can help you decide which Chapter is right for your situation. Each situation is unique. It is essential to get professional advice to ensure that you are using the bankruptcy laws to your advantage. An attorney will help you to make an informed decision in your best interest.
2. Gather Financial Records
If you don’t list a creditor on your bankruptcy filing, that creditor will not be satisfied. It is the debtor’s responsibility to list all the creditors to whom they owe money. Your attorney will ask you to fill out paperwork listing all debt and all assets. This is essential information that will inform your attorney about which Chapter is best for your situation.
Make sure you list all income, assets, and everything that you owe. It is important that you provide accurate information. Your entire bankruptcy plan will be filed using the information that you supply. Do your due diligence to ensure your bankruptcy case runs smoothly. Any questions or concerns with your income and expenses can delay the process.
3. Attend All Appointments
There will be hearings that you have to appear in person for during the bankruptcy proceedings. For example, if you file a Chapter 13, you will need to take financial management classes (sometimes they can be done online), and you will need to appear for the “meeting of the creditors”. Each Chapter of bankruptcy has special hearing requirements. You must be present.
Your attorney and the bankruptcy court will inform you about the hearing dates. Ensure you show up at the place and time you are told to. Missing a date can get your case dismissed. It is very difficult to get a continuance in bankruptcy court. Unless you have a bona fide emergency with documented proof, you should show up for all your bankruptcy-related appointments.
There are a lot of reasons why freelance truckers must file for bankruptcy. Divorce drives a lot of people to have to declare bankruptcy. According to the Census Bureau, not only can divorce have a negative impact on your finances, but finances are the reason that 22% of couples divorce. Medical bills and overwhelming debt are also big factors in declaring bankruptcy.
Ultimately, there is no shame in taking steps to manage your debt. Truckers play a vital role in the American economy. According to the Department of Commerce, about 72% of all supplies and goods in the United States are transported by truck. When freelance trucker runs into debt problems for any reason, they deserve the relief that the bankruptcy laws can provide.
If you are struggling with debt and want peace of mind to do your job, there is help. Contact a bankruptcy lawyer to learn more about your rights and how bankruptcy laws can help you get a fresh start. Call today.
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