How to file for Chapter 7 Bankruptcy

There are many types of bankruptcy available to individuals who want to get out of financial problems. Filing a chapter 7 bankruptcy can give the debtor a fresh start and achieve a quicker debt relief option for the debtor. What happens under this bankruptcy is that the debtor's non exempt assets are sold and the proceeds distributed among the creditors. When you choose this bankruptcy option, you are left with little or no assets.

Do some research and ensure that you are eligible for this type of bankruptcy. You can do this by checking if your monthly income falls below the median income of your state. You are then eligible to file immediately. Talk to a bankruptcy attorney. Your attorney should be able to shed more light on your situation and advice you on whether this is the right chapter for you. They should also guide you throughout the process. Attending credit counseling sessions is mandatory. This will cost you between $40 US dollars to $ 50 US dollars.

Ensure that your paperwork is in order. All the important information concerning the creditors, amounts and the types of debts, assets, monthly expenditure, current income, contracts and tax returns should be included. This could save you lawyer's fees especially where they charge by the hour. File a petition with your local bankruptcy court. This will give way to a "stay", which will deny access to creditors to come after you demanding for what you owe them. Make sure you pay the required filing fees. If you have a special case, a payment plan can be arranged to ease the burden of paying upfront.

Be present at all meetings with your creditors. Cooperation is essential, so provide them with all the necessary documents and records promptly. The sooner you comply, the sooner you get on with your life.
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About the Author
Mercy Maranga writes content on Finance and Debt Management. Visit her site here for more information on Finance and how to effectively Manage your debts. Bankruptcy