What Requirements To File Bankruptcy

Bankruptcy is the right of a person to have the chance for a fresh start of his financial life

. There are two most common types of bankruptcy available today that people may file. You can either file for a chapter 7 or chapter 13. The liquidation or chapter 7 is a type of bankruptcy that will have all of your assets sold and the money derived from your assets will be distributed to all your creditors. The chapter 13 is a type of bankruptcy that provides you with a repayment plan which states a new agreement between you and your debtor so that you can afford to pay for your debts for the period of time agreed without causing you to suffer undue hardships.

In order to file bankruptcy, you need to complete all the necessary requirements. So what requirements to file bankruptcy? You need to provide the statement of your assets which covers everything from your bank accounts, savings, paid vehicles and houses and all your things that are considered to be assets. The new bankruptcy law, effective last October 2005 under the BAPCPA, also made it difficult to file bankruptcy because of limitations, regulations and qualifications that were added. New additional information must be added to the documentation required when you are filing for bankruptcy. What is more important is that you are required to attend a credit counseling class provided by a credit counseling agencies. Also these agencies provide you with a repayment plan and it is also a requirement that you ask for a documentation of your attendance from these agencies so that you can prove that you did attend the credit counseling sessions.

The complication of what requirements to file bankruptcy has risen due to this new bankruptcy law. Added requirements for a chapter 13 type of bankruptcy are, a debtor should be residing in the United States, a debtor should be an individual and a debtor should have an income that exceeds their monthly expenses. With these new laws, it seems even harder to make filing bankruptcy as inexpensive as possible but there are ways that this can be done.

I suggest that you hire a petition preparer or a bankruptcy lawyer to prepare your papers and you can do all the rest of the work. This way, you can control how much you can spend on filing your bankruptcy and make it affordable according to what budget you have. For more support on how to file bankruptcy, visit the website below.

by: Steve

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