Tips for Health

The Process of Filing for Bankruptcy

By on January 31, 2014 in General, Lifestyle with 0 Comments

bankruptcyprocessBankruptcy affects many people, from all different walks of life. Going bankrupt doesn’t mean your life is over, simply that you need to hit a reset button, figure yourself out and keep going.

The thing that causes more stress is not really knowing what the process for going bankrupt is. It can be so overwhelming and the mind is often filled with ‘what if’ scenarios that make a person breakdown before they get through it. HOWEVER, that’s when the research wasn’t done and the right trustee wasn’t hired.

It’s more simple than one would think. However, If its done wrong there can be detrimental effects on a persons financial situation.

I’ve put together a quick list of things to know and what to do for Chapter 7 filing (see the difference between Chapter 7, 11 and 13 Bankruptcy here) :

  1. Qualification Checklist: Do you pass all Chapter 7 requirements? Filling out the ‘Federal Means Test’ form will allow you to figure overwhelmingthis out. If you don’t then you’ll really only have the options to go for Chapter 13.
  2. Find the right Trustee/Attorney: It’s really tough to find a good person for a good price, knowing these steps will help you understand what to look for in an attorney. I wouldn’t suggest doing it without a lawyer, but you could.
  3. Credit Counseling Appointments: You will need to go to credit counseling before you file.
  4. Paperwork Galore! Make sure you finish all the other paperwork that goes along with this. File a schedule of assets and liabilities, current income and expenditures, all debts in the bankruptcy, contracts and any leases or exempt assets you have. There are free bankruptcy forms online, however they are not perfect.
  5. File the Petition, Paperwork and Proof of Counseling You must file this with the area where you live. Once you file, most of the people you owe money to must stop calling you or stop lawsuits against you. Tip: apply for a fee waiver so you don’t have to pay the $299 fee when you initially file.
  6. Attend the meeting with creditors where they will ask you questions about what you owe and anything regarding your financial affairs and property.
  7. Complete a Personal Financial Mgmt Instruction Course after your case is filed (but still within 45 days of the meeting with your creditors)
  8. Wait to hear back and then get your life back on the right direction!

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