Filing Bankruptcy

If you are considering a petition to file for bankruptcy then it is important for you to understand a bit about the process. A good first step would be to retain a bankruptcy attorney. The bankruptcy process occurs in the federal court system but there are state-specific regulations as well. Having an educated attorney assisting you with the process is invaluable. It is important that you find an attorney that you get along well with as you will be spending some time together and going over very personal information. Having a good working relationship with your attorney will help to ensure a smoother process.

One of the first items that will be covered while working with your attorney is declaring all of your assets as well as all of your debts. There are standardized forms that will contain this information; it is imperative that you declare everything. A good way to ensure that you aren’t missing a creditor is to obtain copies of your credit reports. Everything you need to fill out the debts section of the bankruptcy paperwork can be found in your credit reports.

You and your attorney will also determine which chapter of bankruptcy to file. Chapter 7 is a liquidation and complete debt discharge while chapter 13 restructures your debt with a finite payment plan setup. With the change of the bankruptcy laws that came in 2005 not everyone is able to file for Chapter 7 bankruptcy.