Knowing How To File Bankruptcy Makes Process Easier
Believe it or not, standing on the roof and yelling that you are broke is not how to file bankruptcy, no matter where you live. In most cases, you should contact an experienced bankruptcy attorney after the initial consultation they can advise you if you qualify to file for financial relief and the type of bankruptcy you will be eligible to file. The attorney will advise you how to file bankruptcy and will help conduct the means test by which your individual circumstance will be judged.
It is possible to buy all the forms that need to be filled out and file them in the federal bankruptcy court in your district on your own. This would save the fees usually charged by the attorney. However, unless you know how to file bankruptcy forms with the court, there is a good chance they will be rejected and your petition dismissed. Notification to all creditors, secured and unsecured will have to be made and once a person attempts to file their petition and all related forms on their own, they may realize it is worth the expense to pay someone who understands how to file bankruptcy.
Before contacting an attorney, it is suggested that you sort through all of your bills and income statements to determine if bankruptcy is the only option available. One of the new rules on how to file bankruptcy includes financial planning and management instruction as part of the proceeding.
Means Test Is First Step In Bankruptcy Procedure
Under the new bankruptcy laws, every person looking to file for bankruptcy must go through a means test to determine if they are eligible for Chapter 13 or Chapter 7 bankruptcy. A statement of your current monthly income and payments that will be required during the commitment period of a Chapter 13 bankruptcy will be required as part of how to file bankruptcy.
For a Chapter 7 bankruptcy, how to file bankruptcy is different, as you will be asking the court to wipe the financial slate clean, allowing you to start over again. You will have to prove that you have attended financial management classes designated by the court and will be ready to handle your finances if allowed to start again.
While many individuals may understand how to file bankruptcy, it is highly recommended to employ an experienced attorney to insure all the right forms are completed and the proceeding goes as smooth as possible.
