Steps to Using Bankruptcy for Credit Card Debt

If you are experiencing the gnawing stress of excessive debt, you may wish to file bankruptcy credit card. To file bankruptcy on your credit cards and other debt, you will need to go through the legal process involving extensive paperwork, credit counseling and a discharge hearing.

Step 1: Consult an Attorney

Consulting an attorney is the best way to start the bankruptcy process on the right foot. An attorney will be able to help you decipher your options and advise you of the best way to handle your case.

Step 2: Decide Which Chapter To File Under

You will need to figure out which type of bankruptcy is right for you. Generally, individuals who file for personal bankruptcy file under either chapter 7 or chapter 13. To decide which option is right for you, you will take into account your income, assets, debts and other financial circumstances which will effect your future. Your attorney will be able to advise you of the best kind of bankruptcy in your situation.

Step 3: Gather Documents and Complete Paperwork

Gather all financial documents, including tax returns, bills and any papers relating to your assets. You will want to decide whether to include all debt in your bankruptcy. If you can afford to pay some debts, you may decide to not include them, especially if they are attached to assets you wish to keep. Discuss your unprotected assets with your attorney to ensure the best outcome.

Step 4: Credit Counseling

You will be required to do credit counseling if the state in which you reside has this requirement. This is meant to assess your situation, give you some skills to help you after bankruptcy and make sure you understand what you are doing. The agency that completes the process with you will take you through the process step-by-step. Usually, they will help you come to a budget that is feasible for after your bankruptcy filing.

Step 5: Discharge Proceedings

After you file your paperwork, you will have to appear before a bankruptcy court to answer to any creditors who may contest your bankruptcy and formally sign your discharge petition. This is formally the end of your bankruptcy if you are filing a chapter 7. For chapter 13, the final payment on your bankruptcy plan is the ending.

Get Legal Help First

You don't have to face bankruptcy alone. An experienced bankruptcy attorney will help ease your mind and make the process less stressful. An attorney will advocate for you in court and handle your creditors for you.