- 1). Decide which bankruptcy option is right for you. If you have experienced a recent divorce, loss of spouse or employment, or you have extremely high unsecured debts, filing for Chapter 7 bankruptcy may be your main option. However, if you want to keep your assets, including real estate, cars and other property, filing Chapter 13 may the better choice for you.
- 2). Attend an approved credit counseling class if you are filing for Chapter 7 bankruptcy. This class must be completed prior to filing for bankruptcy. Upon completion, you will be issued a certified credit counseling document that you will need to give to the bankruptcy court.
- 3). Gather all your financial documents. These documents include all assets and financial liabilities and monthly living expense information. You will also need to produce a list of all debts owed, copies of your recent tax returns and proof of income. If you're filing for Chapter 13 bankruptcy, you will need to include the amounts of your student loans, back taxes, child support and/or alimony debts owed. You will also need to produce a copy of a plan to repay your debtors.
- 4). Take the means test to see whether you qualify for Chapter 7 bankruptcy. This test consists of four parts that are designed to ensure that you are not able to repay your creditors. As of June 2010, the test will check to see whether you earn more than $39,645 for an individual, $51,568 for two-member families, $60,371 for three-member families or $71,059 for four-member families. An additional $6,900 is added for each individual in excess of four family members in the household.
Check to be sure that your secured debt does not exceed $1,010,650 and your unsecured debt is not higher than $336,900 if you are filing for Chapter 13 bankruptcy. You will have to show proof that you have stable income after paying for normal living expenses. - 5). File your official petition with the bankruptcy court. Include your list of all creditors and amounts owed, all financial papers and all related documents. You also will need to include your certificate you received from the credit counseling class. You will be required to pay $235 for the case filing fee and $39 for miscellaneous administrative fees.
If you are filing for Chapter 7, you will also be required to pay $15 for a trustee surcharge fee. A trustee will be assigned to you by the bankruptcy court. He is responsible for liquidating your property to repay your creditors. - 6). Attend the meeting held between you, your creditors and your trustee to answer questions concerning your financial situation. This meeting usually occurs 20 to 50 days after you submitted your petition. Answer all questions honestly.
- 7). Attend the financial management classes required by the bankruptcy court if you are filing for Chapter 7. You must attend these classes in order to be discharged from your bankruptcy.
Begin repaying your debt, based on the repayment schedule you submitted to the bankruptcy court, if you are filing Chapter 13. If the repayment plan is not approved, you will have to submit a new repayment plan.
- Advertisement -
- Advertisement -