Ten Easy Steps To File For Personal Bankruptcy

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The process of filing bankruptcy is not difficult or intricate. However, at the same time many individuals do not have an idea how to start with it. Know the process of bankruptcy filing in detail at www.bankruptcyonly.com. Following are ten simple steps for the same.

1. Do a lot of research by exploring every possible solution to negotiate with all your creditors before taking the big decision of filing for bankruptcy. This is because the record of bankruptcy is on your credit for the next ten years, which can add as a negative record in your already poor credit situation.

2. Consumer credit counseling has been made mandatory from the year 2005 by the bankruptcy court amendments.

3. You also need to decide which kind of bankruptcy you want to file. The chapter 7 bankruptcy, which is liquidation bankruptcy in which all your property is sold off, and the creditors divide the proceeds amongst themselves. On the other hand, chapter 13 bankruptcy is like a modified repayment program for you debts.

4. The paper work involved in this process is huge and hectic. Hence, it is advisable to find out and take help of a professional attorney with good experience. Also, be careful of the fees. Average attorney fee comes to around $1500-1800. According to chapter 7 bankruptcy rules, the attorney has to be paid prior to filing.

5. Make sure to solve all your queries and doubts with your attorney before proceeding further. The attorney must have a good long list of questions for you, so that you can decide on chapter 7 or 13. Make sure to include all your debts.

6. After filing for the bankruptcy, the bankruptcy protections come in to effect, which also includes the automatic stay.

7. You shall get a notice about the court date to meet up your creditors.

8. Make sure not to run up all our credit cards prior to bankruptcy filing since this can act as a huge red flag to creditors.

9. In chapter 7, the trustee will decide the assets, which have to be liquefied. In chapter, 13 the repayments plan are from three to five years.

10. In chapter 13 bankruptcy discharge, the case will be discharged once you pay up your final payments to the trustee. In chapter 7, the deadline of all creditors for challenging any part of the claim is 60 days after your 341 meeting. If there are no challenges than you will get a formal discharge from the court.

Article Source: http://depositarticles.com/

Individuals belonging to all kinds of economic classes can choose filing for bankruptcy. Since the economy is experiencing a downfall, bankruptcy filings are increasing tremendously. You need not be embarrassed or ashamed to avail the protection of the court if you cannot manage your financial situation on your own.

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