What documents will I need to have to declare bankruptcy?

Where businesses aren't allowed to file for bankruptcy without the assistance of an attorney, individuals are allowed to go it alone. This process is called, "pro se bankruptcy." Nevertheless, though legal, filing bankruptcy can be a rather involved process which involves quite a bit of legal knowledge.

Should a person decide to file pro se bankruptcy there are some things they should be aware of when it comes to process.

First, find a book or detailed bankruptcy information site and study up on the laws regarding bankruptcy, particularly the laws in your particular state. Books of this sort can be found in a library in the how-to or reference section. Look for the "Federal Rules of Bankruptcy Procedure" and/or the "Federal Rules of Civil Procedure."

Make the decision as to which Chapter - 7 or 13 - of bankruptcy is going to best suit your situation. Keep in mind that with Chapter 7 it is a complete liquidation bankruptcy. This type of bankruptcy requires that all your assets be sold, with the exception of exempt property, in order to repay your debts or have them forgiven.  In the case of Chapter 13 your debts are restructured, allowing you to repay debts on a new schedule determined by the bankruptcy trustee for generally 3 to 5 years, but allowing you to keep all of your assets.

As part of the process you will need to complete a credit counseling course prior to filing for bankruptcy. This must be from an approved agency and completed during a 180 day time period directly before filing for bankruptcy.

Locate the U.S. District Bankruptcy Court which governs your jurisdiction. You will need to complete a Voluntary Petition and attach it to a copy of your most recent federal tax return. Include with these documents the credit counseling certificate you received from the course you took as well as the last 60 days worth of paycheck stubs.

Files these papers with the U.S. District Bankruptcy Court. There is generally a fee involved with filing for approximately $299 if you're filing Chapter 7 or $274 if filing for Chapter 13. If you are unable to afford the filing fee - for Chapter 7 only - you can complete and file a fee waiver form.