Filing Personal Bankruptcy Help

Deciding to file bankruptcy is a huge decision and not one to be made lightly. Before you make this decision it is a good idea to research bankruptcy information online so you know what to expect before you hire an attorney. Doing so will allow you time to gather all the financial data that you are going to need prior to sitting down and discussing your case.

First and foremost will be the amount of debt you owe and whether you are able to repay this debt. Next, the lawyer will advise you as to what “chapter” bankruptcy you are eligible to file. This will normally be a Chapter 7 or 13 for most individuals, and debts will be classified as “secured” or “unsecured”. Secured debt means that someone holds a lien on your collateral, and unsecured is a debt that has no collateral lien, such as a credit card.

Not everyone is eligible to file bankruptcy, however, and even if they are there are certain legal guidelines that have to be followed. It’s a little more complicated than announcing to a lawyer that you want to file bankruptcy. You are going to have to prove that you are unable to meet the obligations of the debts you have incurred.

Together, your bankruptcy attorney and you will work through the paperwork involved to get your petition to the bankruptcy court a quickly as possible. This may require a few visits to the law office before things are finalized, however. There will be seemingly endless papers to be signed before you are ready to appear in bankruptcy court, but once there the process is fairly straightforward.

In a matter of five to six months your chapter 7 bankruptcy will be discharged if approved. You will receive notice in the mail of the decision. Chapter 13 bankruptcies will have a trustee appointed to oversee the payments you are scheduled to make, and this person will take and distribute money to your creditors each month.

Bankruptcy information will also note that this will stay on your credit report for a period of seven or eight years, and this information is available to the public. Once you file bankruptcy, you have a second chance to a fresh start and credit should be used wisely to avoid this circumstance again.

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