Filing for individual bankruptcy can have a devastating impact on your life. Individual bankruptcy ruins your credit score. You may find it difficult to maintain credit cards and bank accounts once you file for individual bankruptcy. Make sure there are no alternatives left for you before filing for individual bankruptcy.

Things You Will Need

Bankruptcy attorney, list of all your creditors.

Step 1

Firstly, you have choose between Chapter 7 and Chapter 13 individual bankruptcy filings. chapter 7 is a straight or liquidation bankruptcy and chapter 13 is a repayment plan for individuals. Chapter 13 is better for an individual, so that your debts are eliminated, but the court must approve that.

Step 2

Now, you will have to meet a an attorney who specializes in bankruptcy filings. Although an individual can do it on his own, It's better to take the help of a bankruptcy attorney as things can get pretty complex.

Step 3

You will have to produce your income statement for the last 6 months while filing for individual bankruptcy.Your bankruptcy filing should include every debt you owe whether it is unsecured and secured debt.

Step 4

After you filed for bankruptcy an automatic stay will come into effect immediately. Now onwards, refer all creditors to your lawyer's office, once he or she has been retained. They will then be able to speak on your behalf.

Step 5

For your creditors to file lawsuits challenging the discharge of a particular debt, 60 days is the deadline. If no such lawsuit is filed, your debts will be discharged after the time period.

Keep in mind that individual bankruptcy doesn't mean the end of the road for you. It allows you to clear off your debts and start a new life. But your credit score will be damaged for at least 10 years.

Tips & Warnings