How To File Bankruptcy In the United States

Filing for bankruptcy in the United States is a matter that is handed by the federal court system. There are some aspects of the process that are determined by your state of residence at the time you file, however. Read on to learn how to file for bankruptcy in the United States.
Bankruptcy Trustee

The bankruptcy trustee can be either an individual or a corporation. The trustee is appointed by the court, and serves as the intermediary between the bankrupt and their debtors. The trustee is responsible for gathering and liquidating the assets in Chapter 7 proceedings and for collecting the payments from the bankrupt and forwarding them to the creditors in chaper 13 bankruptcies.

Bankruptcy Abuse Act

This video by the Federal Judicial Television Network, is an educational video produced by bankruptcy judges, staff attorneys and law clerks, including an extensive discussion of the means test for chapter 7 eligibility. The means test was introduced in 2005 as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

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Introduction

There are a number of things to think about before filing for bankruptcy in the United States. Bankruptcy judgments can affect your credit rating for up to 10 years, so it is not a step that should be undertaken lightly.
Chapter 7 vs Chapter 13 Bankruptcy

When you file for Chapter 7 bankruptcy protection, your debts are wiped out (except for a few that are not eligible to be discharged) and you get a financial fresh start. Your creditors are entitled to receive the proceed s of any assets that you have above and beyond the exemptions permitted by law. After they have received the court approved settlement, the remaining debt is forgiven.

If you are not eligible for Chapter 7 bankruptcy, you may still be able to file under Chapter 13, which restructures your debts to make the payments more affordable. Your creditors are required to accept the schedule that is a approved by the bankruptcy court. Some individuals with large amounts of debt may need to file under Chapter 11, as they are ineligible to file Chapter 13 bankruptcy.
Step 1: Should You File for Bankruptcy Protection?
Although filing for bankruptcy can help you get your finances in order, it is not an action to be taken lightly. You think to think carefully to decide if bankruptcy is right for you. It can be helpful if:
1. You've already tried to negotiate with your creditors without success.
2. Your liabilities exceed your assets, so you have few resources that you can liquidate to pay your debts.
Step 2: Prepare to File for Bankruptcy
1. Detail all of your assets.
2. Create a list of debts, including the name, address, and phone number of your creditors, the balance due, interest rate, and minimum monthly payment.
3. Gather together supporting documents, such as credit card statements and other bills.
4. Assemble any correspondence you've received from your creditors.
Step 3: Meet With a Credit Counselor

One of the documents you are required to file with the bankruptcy petition is a certificate stating that you have undergone credit counseling with a credit counselor approved by the U.S. Bankruptcy court system. The credit counselor may be able to help you determine if you have alternatives to bankruptcy, and if they don't you'll have the certificate you need to file with the court.
Step 4: Where to File for Bankruptcy

Bankruptcy is a process that s managed by the federal court system. In most cases, you will file for bankruptcy in the U.S. District Court that covers the county you live in at the time you declare bankruptcy, but there are certain cases where you might need to or be able to file in another state, depending on your personal circumstances.
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