You can download bankruptcy forms for free at http://www.uscourts.gov/forms/bankruptcy-forms. Then the fun begins. Here is a seven-step rundown of bases you must cover.
1. Make Sure You Are Eligible
There are qualifying standards that must be met before you can file for either Chapter 7 or Chapter 13 bankruptcy and it makes sense to do research to see what form of bankruptcy you are eligible for.
To be eligible for Chapter 7 bankruptcy, an individual must pass a “means test” that determines whether their income is at or below the state median. If not, they may have to file additional paperwork or switch to Chapter 13 bankruptcy.
To be eligible for Chapter 13 bankruptcy, an individual’s unsecured debt must be less than $419,275 and secured debts of less than $1,257,850.
2. Take the Means Test
This is a form that measures an individual’s income, expenses, and household size to determine whether they can afford their debts. It compares your average monthly income against the median income of similar households in your state. If your income is below that average, you automatically qualify.
If your income is above the state average, there are other formulas incorporated into the bankruptcy means test, but they are complicated and will probably require getting some legal advice before proceeding.
Before even bothering with the means test, however, review your financial history and research the “median income” for your state. Also, you are not allowed to file for Chapter 7 bankruptcy if it’s been fewer than eight years since you went through Chapter 7. If you went through a Chapter 13 bankruptcy, you must wait at least six years before filing for a Chapter 7.
3. Receive Credit Counseling
You must enroll in bankruptcy credit counseling from an approved agency like http://SelfHelpBankruptcy.online Debt Solutions and complete the course within six months of filing for bankruptcy. The court requires you to have a certificate showing you’ve passed the course before it will allow you to file for bankruptcy.
4. Fill Out Bankruptcy Forms
The first form is a Voluntary Petition, Form B101. Other forms will require information on your creditors, contracts, expenditures and specify any debt repayment plans you have negotiated. You can find these forms on the U.S. Courts website.
5. File a Petition
This will get your case on the court schedule and stop creditors from pursuing action against you. With Chapter 7, the court will appoint a trustee to meet with you and sell your non-exempt property. Any property deemed necessary (home, car, clothing, work-related property, pensions) will be safe, though your house can be foreclosed on and your car repossessed if you miss loan payments.
6. Attend a “341” Creditors’ Meeting
The creditors’ meeting, called a 341 meeting, is where the bankruptcy trustee appointed to your case will ask you questions under oath about your financial situation. Specifically, the trustee will verify your identity, ask about the accuracy of your bankruptcy petition and schedules and give you the chance to reveal any changes that have taken place since you filed your documents.
Creditors are allowed to ask questions about your financial situation, but this rarely happens. In most cases, the meeting will take less than 10 minutes.
7. Attend a Financial Management Course
The list of approved debt education courses is available on the Department of Justice website. SelfHelpBankruptyc.online Debt Solutions is an approved agency with our own online bankruptcy course. The course must be completed within 45 days of meeting with your trustee and creditors.
Lieberman said anyone considering bankruptcy should take the important first step of using an internet search engine to find the bankruptcy court for their area. Each site has a plethora of information for consumers and filers.
8. Attend Court Hearings
Attending bankruptcy court hearings typically requires in-person attendance because these proceedings involve direct communication with the judge, trustee, creditors, and attorneys. The in-person presence allows for a more direct presentation of evidence, ensures that all parties can ask questions or raise concerns, and facilitates the resolution of any legal issues on the spot. In-person hearings also ensure that the bankruptcy process is conducted transparently and efficiently, as judges may need to assess the credibility of witnesses or the debtor through personal interaction.
However, in certain situations, courts may allow remote participation through video or teleconferencing, especially if approved by the court, or if special circumstances, such as health concerns or geographic distance, make in-person attendance difficult.