How To File Bankruptcy?

Information About How To File Bankruptcy

The first step in filing a personal chapter bankruptcy is to make sure that there are no other alternatives to filing for bankruptcy protection. If there are other suitable alternatives then it is wise to sit down with a financial expert and explore all possible avenues for improving your financial situation. Bankruptcy is a very serious thing and can set you back for years and years financially so it should only be used as a last resort when it is simply not possible for you to handle your debts by yourself.

If you determine that you must file for personal chapter bankruptcy you need to contact a reputable bankruptcy lawyer. The best way to find one is by looking up reviews online, asking family and friends, and contacting your state bar association.

After finding a lawyer you need to get together with him/her and decide which chapter bankruptcy is right for you. As an individual you have several different options with the most commons ones being the Chapter 7 and Chapter 13 bankruptcies. The most popular chapter bankruptcy, the chapter 7, involves the bankruptcy court doing a straight liquidation of the filers debts and wiping the slate clean for them. The Chapter 13 on the other hand, establishes a repayment plan for the filer. A chapter 7 bankruptcy use to be the most popular but with recent changes in the bankruptcy laws it has become a lot harder for people to qualify for a chapter 7 filing.

After consulting with your lawyer and determining which chapter bankruptcy is the best for you then need to move forward with the actual filing process. If you want you can choose to pay your attorney to do most of the work for you but if you do not have the money to do that you can do quite a bit of it on your own. Usually the filing fee is about $1,700 if you use a lawyer and $299 if you do it on your own. We highly recommend using a lawyer so that you do everything correctly and get the best possible outcome. If you make certain mistakes in filing your bankruptcy case could be dismissed.

The first step in filing bankruptcy is to give your attorney all of your outstanding bills, bank statements, and pay stubs from the last six months. You also want to give him/her copies of bills you may have paid in the last six months. This can include anything from an electric bill to a car payment. Finally, you will need to provide him/her with a list of all assets that you have.

After turning overall all of this information your lawyer will help you file your petition for bankruptcy. On this bankruptcy paperwork you are required to list every single debt that you have. If you fail to list all of them the bankruptcy judge/court can dismiss your petition for bankruptcy and you could also be jailed or fined. It is a federal offense to lie on your petition. At this point in the filing process you can begin referring all calls from creditors to your attorney.

After your bankruptcy case has been filed the court will send out letters to all of your creditors notifying them of your intent to declare bankruptcy. Once they receive this notice they are required by law to stop all collection attempts. At this point you should also discontinue the use of any credit services or it could make it impossible for you to get some of your debts discharged.

The next step involves a meeting between you and your creditors. Here they will discuss all of the information on your bankruptcy petition to make sure that it is accurate and correct. This meeting generally lasts about 10 minutes.

After going through all of this your creditors will have 60 days to file any challenges to your bankruptcy or any lawsuits against your filing. After the 60 days if there are no challenges you will get a notice stating that your debts have been discharged and you are no longer obligated to pay them (If you filed a Chapter 7). If you filed a chapter 13 you will get detailed report of your scheduled repayment plan. In your repayment plan you will be required to make a monthly payment to the bankruptsy court and they will disburse it among your creditors. At this point you will be done with your bankruptcy.

Above we have given you a short explanation of the process of petitioning for a bankruptcy. If you are interested in more information about filing for bankruptcy take a look around our blog or make a call to a bankruptcy lawyer in your area.

*This information should not be considered legal advice and should not replace the work of an actual attorney