Filing For Bankruptcy: The Six Important Steps You Should Know

Filing For Bankruptcy: The Six Important Steps You Should Know

As you file for bankruptcy, you should be willing to go through credit counseling, fill out required paperwork, determine which one of the bankruptcy chapters applies to your case, submit the names of all your creditors, pay your fees and send all information to your local bankruptcy court.

If you are flooded with a lot of overdue and unpaid bills which you are unable to pay, it is best to opt for filing for bankruptcy. Legally speaking bankruptcy means that either a person or an organization has been deemed incapable of paying off their debts. Before proceeding with cheap bankruptcy filing florida, here are a few steps that you need to undertake first.

Step 1: Undergo credit counseling

Credit counseling classes originated from the regulations of the Bankruptcy Court in the United States. People who file for bankruptcy are required to take two of these classes for the purpose of determining whether bankruptcy filing is indeed the best option there is. You will want to refer to the list of approved credit counseling classes that your local bankruptcy court will surely offer you. Then you have the choice of taking a credit counseling class on the Internet or by telephone.

Step 2: Complete the required paperwork

You will be able to easily and quickly get a copy of the bankruptcy forms that you are required to sign just by downloading them at the US Bankruptcy Court website. These documents typically require you to give personal information about your financial standing, debts, assets and income. Be sure to complete all the required fields with information that is accurate and up to date. The website also offers sample completed documents that you can refer to. The bankruptcy court is where to submit documents that are completed.

Step 3: Determine what bankruptcy chapter you should file

There are certain chapters of bankruptcy that entail different responsibilities. Distinct differences exist between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 13 entails setting up a 3 or 5 year creditor repayment plan, while Chapter 13 enables you to liquidate all assets. These will aid in determining the chapter for which you need to apply for based on your circumstances.

Step 4: Submit a complete list of your creditors

You will be required to present a list of all current creditors with accurate information when you are in court. Verify that creditor and debt information is correct when you check the list. If the information you supply is not complete they may require another fee to enter the additions.

Step 5: Pay your fees

You can refer to your local bankruptcy court to find out the total amount of fees you must pay. In normal situations a bankruptcy court will not take any method of payment other than a money order. While making payments through money orders, make copies as your proof of each payment.

Sixth Step: Forward all of the requirements to your regional bankruptcy court

Look up the nearest bankruptcy court and get down there with your money orders, forms, and counseling certificates for submission. After you've sent in everything that you need to, you will get a letter confirming that you filed for bankruptcy.

The concept of bankruptcy gives an option to the bankrupt person or group to have a fresh start and a new direction for the future even when it is impossible to pay financial obligations.

by: danica

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