A Guide on Filing for Personal Bankruptcy
Filing for personal bankruptcy under Chapter 13 or 7 is a long legal process. There are some very specific steps that you must follow in order to file for bankruptcy in the United States. The best way for me is to present these steps is by numbering them. Read on if you wish to learn how to file for personal bankruptcy.
1. Step 1
First, you should check your current financial status and make sure that you really have no choice but to file for bankruptcy as it is not a matter to be undertaken lightly. After filing for personal bankruptcy, chances are you will confront all kinds of problems in the future. For example, you may be denied job promotions, and you may not be able to get credit to buy a house or a car because you filed for personal bankruptcy.
2. Step 2
You need to decide what kind of bankruptcy that you wish to file. You can file for either Chapter 7 bankruptcy or Chapter 13 bankruptcy. Chapter 13 bankruptcy involves the repayment of debt over a long period of time, while Chapter 7 bankruptcy will discharge all your debts but you will have to sell off your assets such as a car or even your home.
3. Step 3
You will have to investigate the bankruptcy laws and regulations in your state as bankruptcy laws differ from state to state. In some stats, you may be able to keep your house. In other states, you may be forced to sell your house.
4. Step 4
You should consult a bankruptcy lawyer. Make sure you find a bankruptcy lawyer who will work with you closely. More importantly, the lawyer must understand the bankruptcy laws of the state that you are located in. If possible, try to get some recommendations from your friends or relatives.
5. Step 5
File all the necessary paperwork. You can download the forms from your local state office website. Check the personal bankruptcy documents completely to make sure that all the necessary details have been filled in.
Filing for personal bankruptcy under Chapter 13 or 7 is a major decision that has a huge impact on your life. Thus, you will have to consider it really carefully. This article has explained the steps required to file for personal bankruptcy in the U.S. You should do some further research to learn how filing for personal bankruptcy can affect you down the road. Make sure you understand the big picture before you decide to take the first step.
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Comments
I'm sure this will clear up confusion for many people who are in the process of filing a BK.
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