If you are in a desperate position with no other recourse but to file for bankruptcy, then you should be prepared to handle additional stress. This is because you will inevitably run into some issues in the foreseeable future. Fortunately, knowing the proper steps in bankruptcy filing can help you through the process swiftly and easily. Below are the seven steps you can follow in filing for bankruptcy in the United States:
1. Instead of filing for bankruptcy by yourself, you can seek the help of a lawyer in the local area. There are actually many professionals who specialize in bankruptcy so you can easily find experts through researching over the internet or asking local associations.
2. Once you find a suitable lawyer, you need to bring all relevant financial documents on your meeting. This should include loan papers, bank statements, and your foreclosure notice among others.
3. Remember that it is against the law to lie about your petition. You need to include all your debts in the paperwork or the court may decide to dismiss your bankruptcy case.
4. Then you can speak with the bankruptcy attorney about which of your debts will not be discharged. Usually, you will still need to pay for child support, tax debts, and student loans. Some people think that they will get rid of these debts when they file for bankruptcy but this is not the case.
5. Determine which type of bankruptcy is for you. Chapter 7 and Chapter 13 bankruptcy are the most common types of bankruptcy for an individual. Chapter 7 is known as the liquidation bankruptcy where most of your debts will be eliminated. Meanwhile, Chapter 13 is also known as the “adjustment” bankruptcy. You will still need to pay off your debts within a specified timeframe. Ask your lawyer to provide more details on each of these types.
6. Carefully go through all the documents with your lawyer. Every mistake you commit at this point can cause a lot of problems in the future. Double check all information to ensure its accuracy.
7. Lastly, your creditors will be given a notification of your bankruptcy; a Notice of Commencement will be given and the Meeting of Creditors will be scheduled.
These are basically the steps to filing bankruptcy in the United States. In some cases, bankruptcy discharge may be challenged. If this happens, you will need to consult with your bankruptcy lawyer again to find out the best thing to do for the situation.
