Steps for Filing Individual Bankruptcy

The legal process of filing individual bankruptcy can be confusing.  For the average person, any legal process can be confusing.  Legal jargon and processes are often complex and something that can be hard for a person to understand.  To make it easier to file individual bankruptcy you should learn the basic steps.

Step One

Gather all of your debt information.  You need the amount of each debt and the information for each creditor.  Make sure that you get information for every debt you want to file for.  If you do not list a debt on your bankruptcy paperwork then you will not be able to get it discharged through bankruptcy.

Step Two

Contact an attorney that deals in bankruptcy law.  You will want to have an attorney to at least consult with even if you do not want to be represented in court by the attorney.  The paperwork and process can be overwhelming and it helps to be able to have help with it. 

Your bankruptcy can be dismissed if you do not fill out the paperwork correctly.  You will also want help figuring out your exemptions so you can save as many assets as possible from liquidation.

Step Three

Attend the mandatory credit counseling.  Under the new bankruptcy laws you must attend credit counseling and submit proof of attendance when you file your individual bankruptcy paperwork.

Step Four

Attend all court hearings set by the bankruptcy court.  You can not miss hearings or show up late.  The court can dismiss your case if you fail to appear at a hearing or show up late.  These hearings are for your benefit and a mandatory part of filing an individual bankruptcy.

Tips on Filing Individual Bankruptcy

It is very important that you are completely honest on all paperwork because you can be fined or even put in jail if you lie.  You can not hide assets or even transfer ownership to save them from being liquidated.  You will be found out and you will get in trouble. 

Filing bankruptcy should be done when you have exhausted all other efforts to end your debt problems.  Specific details about filing individual bankruptcy vary from state to state so be sure that you know what you need to do under your state laws.

Make sure that you do everything you are supposed to under the bankruptcy laws.  Forgetting to do something or doing something wrong could result in your bankruptcy case being dismissed and you will have to wait to refile.