Steps In Declaring Bankruptcy

Considering declaring bankruptcy? You’re not alone. Many people in today’s economy are faced with the reality of having to file either Chapter 7 or 13 bankruptcy in order to clear overwhelming debts, protect their homes from foreclosure, and get their heads above water again. If you’ve decided that it’s the best option for you and your finances, your main responsibility is to educate yourself so that you can approach the process and make the best decisions along the way.

Declaring Bankruptcy Process

Filing bankruptcy is relatively simple. Some people choose to do it themselves without the support of a bankruptcy lawyer, but a lawyer is the best bet for the majority of people. They not only help you navigate the waters of court; they also advocate for you in making sure your creditors receive the proper notice and that your records are correctly filed.

• Your first step, after you determine what type of bankruptcy you’re filing (a lawyer can also assist with this decision), is to notify your creditors of the impending action.
• They will be notified through bankruptcy court when your motion is made official, but sending them copies of your Statement of Intent not only satisfies your legal requirements but has the added benefit of stopping harassing collection calls that much sooner.
• Not long after you put the process into motion, you will be asked to attend a Meeting of Creditors. If any of your creditors wish to contest your bankruptcy, they are asked to appear at this meeting to state their cases. Typically, unless you have an unusual amount of assets, creditors don’t appear and it’s a simple process. You’ll be asked a series of questions by a Trustee during this meeting to verify the information concerning your debts and financial situation.

Aside from appearing at the meeting, most of the work for your bankruptcy will be done on your behalf, with your main obligation being to provide complete, truthful information on the paperwork, and follow up with anything that is requested of you. Make sure to read all documents and verify their correctness. Once your bankruptcy is finalized, you should consider it your continuing responsibility to keep an eye on your credit report and verify that charged-off accounts are not held against you, and that the bankruptcy itself clears away after the specified amount of time (typically 10 years from the date of filing).

Bankruptcy is not a difficult process. Remember that while it involves intimidating factors like a court appearance and full disclosure of your financial details, it’s not a punishment, and it’s designed to help you get a fresh start on your financial situation. Do what is requested of you and ensure that your given information is accurate and complete, and before long your main responsibility will be beginning to rebuild your financial standing.

Getting Help

Working with an attorney can help you streamline each step of the bankruptcy process. He can do most of the work for you so you simply have to provide information and he takes care of all of the legal details of the bankruptcy.