Bankruptcy filling is quite a personal decision. By filing a petition for bankruptcy endorsed by the U.S. Bankruptcy Court, the filling is protected and the relief of its debts under the bankruptcy law. Bankruptcy would be the last resort, if no better alternatives are available and the consequences of bankruptcy filling will be evident for the next 7-10 years. If bankruptcy is the only option you have, then learning the bankruptcy filing process can help you get more prepared to cope. This article is aimed at taking you round the overall process of filing for bankruptcy.
The first part of the bankruptcy filing process is to collect personal financial data. This will include existing debts from unsecured creditors and tax returns for the past two years. Prepare all your documents that should include contain your own real estate, land titles, car title and other loan related documents. You can also request for your credit report, which provides useful data on previous records. You can then get a bankruptcy lawyer, or do it yourself.
If you choose to file by yourself, you must obtain bankruptcy forms (you get these forms online) and get it filled. You must fill out your current economic situation and recent transactions (within the last 2 years) as part of the forms of bankruptcy. Meanwhile, you need to decide what type of bankruptcy you intend to file for, there are two well known types, which are Chapter 7 and Chapter 13 Bankruptcy. Chapter 7 is preferred, but not everyone has the right to file for Chapter 7. If you choose to file for Chapter 13, you must attach the proposed payment plan with the petition. When a bankruptcy file is complete you need to file a petition to the local bankruptcy court of the United States. If you have assigned your bankruptcy attorney to manage your bankruptcy case, this attorney would assist and guide you through the process described above.
Once you have submitted a petition in the bankruptcy court, you would immediately be protected by the bankruptcy code. Your creditors can not communicate directly with you to make a complaint or request for any property. About a month after, the trustee calls a first meeting with all creditors and a lawyer for them. Charges are usually resolved through negotiation between the creditors and the debtor. If there is no challenge to state at the meeting, you would be notified by the court 4-6 months later, if the bankruptcy is discharged, otherwise, if a compromise may be reached by both parties, then the judge will intervene.
Filling for bankruptcy is a very long process; it may take up to six months to a few years if it involves an entire court case. You should be prepared to confront it, and if you do not have confidence in yourself to go through it, it is best left to an attorney to manage the bankruptcy process.
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