How to File Bankruptcy?

Answer 1

The U.S. Congress established federal bankruptcy laws so that honest but unfortunate debtors could make a fresh start. While any bankruptcy filing must be made in federal court, your local judicial district administration and bankruptcy judge will process your filing.

Step One: Filing Decisions

Determine what type of bankruptcy filing you should make. The six standard types of filings are: Chapter 7-- Liquidation; Chapter 13--Adjustment of Debts for individual wage earners; Chapter 11 Reorganization; Chapter 12 Adjustment of Debts for farmers and fishermen; Chapter 9 Adjustment of Debts for municipal entities; and Chapter 15 Ancillary and cross-border insolvency. Chapter 7 is one of the most common types of bankruptcy filed by private citizens.

Step Two: Filling Out the Forms

Obtain the required forms from your bankruptcy lawyer, or if you are representing yourself, download the correct forms for your judicial district online at http://www.uscourts.gov/bkforms/index.html. Included in the paperwork is a petition for the discharge of your debts, a schedule of your assets and liabilities, a financial statement, and a list of your existing, unexpired leases. Also, you must include copies of your tax returns and pay stubs, a certificate of credit counseling, and a debt repayment plan.

Step Three: File for Bankruptcy

File your completed forms with the federal court in your jurisdiction, or if you are represented, have your lawyer do the filing. Unless you have already arranged to pay the court fees in installments, you must submit the case filing fee of $245, a $39 administrative fee, and a $15 trustee fee upon submitting your paperwork. These fees are accurate as of June 2011, but consult your lawyer or court clerk for verification.

Filing a Chapter 7 bankruptcy petition automatically stops debt collectors from trying to collect.

Step Four: Attend the Creditors Meeting

Present yourself at the official meeting of creditors. After a period ranging from 21 to 40 days, your trustee will contact you or your lawyer with the date and time. You must answer any questions under oath, and provide any additional records your trustee requests.

Step Five: Wait for the Final Discharge

Wait for the bankruptcy to become finalized. Most bankruptcy courts take approximately 60 to 90 days after the initial filing to complete a Chapter 7 bankruptcy filing. According to the federal courts, 99 percent of Chapter 7 filings are granted full discharge of debts.