-->
-
When you're overwhelmed by debt, you may feel that there's no where to turn. Bankruptcy provides legal protection from harassment by creditors, and can help you restructure your financial life for a fresh start. If you are at loss for where to begin, this page will show you what in need to know when you are wondering how to file for bankruptcy.
-
-
Related Mahalo Pages
How To File Bankruptcy In the United States | How To File For Bankruptcy Without A Lawyer | How to File for New York Bankruptcy | How to Know When to File for Bankruptcy | How to Hire a Bankruptcy Lawyer | Chapter 7 Bankruptcy | Chapter 11 Bankruptcy | Chapter 13 Bankruptcy | AIG Bankruptcy | General Growth Properties | How to Avoid Foreclosure | How to Stop Foreclosure | How to Modify Your Mortgage | How to Invest | How to Manage a 401(k) | How to Get a Small Business Loan | How to File for an Employer ID | How to Get a Free Credit Report | How to Decide Whether to Freeze Your Credit Report | How to Improve Your Bad Credit Score | How to Build Good Credit | How to Get Out of Debt | How to Deal with Debt Collectors | How to Consolidate Debt | How to Save Money | How to Survive a Recession | How to Consolidate Your Bills | How to File for Unemployment in Georgia | How to Start a Small Business | How to Sell a Structured Settlement | How to Get Out of Debt Videos | How to Reduce Student Loan Debt Videos | How to File for New York Bankruptcy | Debt Ski | How to File for Texas Bankruptcy
Categories
Managed By: cynthiag
Managed Since: 06/05/2009
Views: 157
Money Earned: M$20.06
Page revenue is subject to change as we obtain data from our partners
Managed Since: 06/05/2009
Views: 157
Money Earned: M$20.06
Page revenue is subject to change as we obtain data from our partners
- View History
- Discuss on the Message Board
- Embed this Page
-
Share this page
-
Introduction
- Although it may be frightening, bankruptcy is actually a legal protection available by law. It is not a step to be taken lightly, however, and is definitely one situation where professional advice is essential. Before filing, you'll want to assemble detailed information about your financial position, and review everything with an attorney or credit counselor.
-
Step 1: What is Bankruptcy?
- When you declare bankruptcy, you go to court to obtain protection from creditors. There are two types of bankruptcy protection available to consumers, Chapter 7 and Chapter 13. Both types adversely affect your credit rating for up to ten years, so should not be entered into lightly. Before beginning the process, you'll want to be sure you have exhausted all other avenues to pay your debts.
-
Step 2: Get Organized
- This may be painful, but you'll need to open all those envelopes containing the bills you've been avoiding. Create two lists, one detailing all of your assets, and one list of everything you owe. The list of debts should include the name, address, and phone number of your creditors, the balance due, interest rate, and minimum monthly payment. Make sure to include all of your debts. Your attorney can help you go through and sort out which are eligible for bankruptcy protection and which, such as student loans, are not. Place all of this in a folder along with any supporting documents, such as credit card statements, and any correspondence you've received from your creditors.
-
-
Step 3: Bring in the Pros
- Although legally you can file for bankruptcy without support, this is not a situation which you would want to handle by yourself. Bankruptcy is complicated, and there will be decisions which need to be made, which call for experienced counsel. The attorney will also speak to your creditors on your behalf, which will minimize the endless stream of bill collection phone calls. Hiring a bankruptcy attorney will help ensure that you wind up in the best possible position after the case is resolved, but if you can't afford one, both federal and state agencies provide free credit counseling services that can help.
-
-
Step 4: Determine Which Type of Bankruptcy to File
- Consumers have two avenues of bankruptcy available to them. You may be able to file under Chapter 7 of the U.S. Code, and have your assets sold and debts wiped out, or , if you qualify, you can elect to file under Chapter 13, and have the creditors accept a payment plan developed by the courts. There are specific criteria that must be met under each type of bankruptcy, and the decision, of which form to elect, should be made with the help of a bankruptcy attorney.
-
Chapter 7 Bankruptcy
- In a Chapter 7 bankruptcy, also called liquidation, your assets are sold and the proceeds are given to your creditors to satisfy your debts. You are permitted to keep some personal items, such as clothes, your cars, and furnishings. What is exempt differs from state to state. As each state has different exemption levels, you need to select he state you will file in carefully. Most people need to file in the state they are currently living in, but there are circumstances, such as when you have been abroad, that may permit you a choice as to where to file.
-
Chapter 13 Bankruptcy
- A Chapter 13 bankruptcy is sometimes referred to as a reorganization. In order to file for Chapter 13 bankruptcy, you must show the court that you have an income stream that will enable you to repay your debts. The court imposes a repayment plan that modifies the terms of your existing debt and schedules minimum payments that must be made to pay your debts off within three to five years.
- In order to take advantage of Chapter 13, you must have income, and your debts cannot exceed $1,010,650 in secured debt and $336,900 in unsecured debt.
- Chapter 13 bankruptcy can sometimes be used to avoid foreclosure.
-
Step 5: Don't Take on Additional Debt While Contemplating Bankruptcy
- Once you have begun thinking about bankruptcy, stop using your credit cards. You can go to jail for taking on debt that you know you can't repay, and using your credit cards after beginning the bankruptcy process would qualify as taking on debt.
-
-
Conclusion
- Bankruptcy is a serious step, undertaken when all other alternatives are exhausted. After analyzing your situation, consulting with experts, and going to court, you'll have a plan that will allow you to start fresh without being hounded by creditors. It's important to comply with all the terms of the settlement, making all required payments on time.
-
