Tips to Filing Bankruptcy

Given the recent economic recession, chapter 7 bankruptcy has fallen on many households. In most cases, bankruptcy should be considered as a last option. If a person has been surprised by some financial burdens that they are unable to overcome, such overwhelming credit card debt, mortgage payments and divorce, hiring a bankruptcy attorney is a smart move. However, bankruptcy will not erase all debts: taxes, alimony, and student loans will remain intact. Most residents who declare bankruptcy hire a lawyer instead of filing for it on their own.

Consulting a credit counseling agency within 180 days of filing for bankruptcy is a must. A list of recognized organizations provided by the government can help people decide as to which chapter they should file under. A reputable bankruptcy attorney can help a person navigate the sometimes complex deposition process. Many offer free consultations. If a person is unable to hire an attorney, they should download the needed bankruptcy forms and go from there.

Submitting a request packet, which consists of official bankruptcy forms, can be downloaded from various law websites and federal government sites. Once the paperwork has been filed, the claimant will need to pay any corresponding fees. For a fee schedule, visit the bankruptcy site provided by the government. chapter 7 bankruptcy and 11 deposits can be paid in installments if certain conditions are met, but the chapter 12 and 13 filing fees must be paid in full with 45 days of filing. To pay in installments, submit the application and your petition. If a person files for Chapter 7, they can also file a fee waiver request by completing the application for fee exemption.

File the petition with the county clerk. After filing, you must follow the personal financial management course and file a certificate with the court system. Most lawyers charge around $1,500 and more to help people file for a fresh start. These costs do not include filing fees that are to be paid to the Federal court system. To file bankruptcy for free, people must be able to find free copies of the necessary forms and prepare each one properly. In addition to this, they must also file a petition requesting that the court costs be canceled.

There are certain things needed to ensure the process goes without a hitch. For example, an individual filing for bankruptcy will need the names and addresses of all creditors, a list of goods and their value and a petition for relief. For more information, contact a local attorney today.

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