Saturday, May 26, 2012

Six Critical Things You Need To Do When Filing For Bankruptcy

6 Important Steps to Follow When Filing for Bankruptcy

When filing for bankruptcy you should undergo credit counseling, fill out the necessary forms, determine what bankruptcy chapter you need to file, submit a complete list of your creditors, pay your fees, and send the requirements to the bankruptcy court in your region.

If you find yourself so completely swarmed with overdue bills to that you do not have the capacity to pay, filing for bankruptcy might be your best option. As per the law, a person or a company is said to be facing bankruptcy if they are unable to pay their debts. Here are some procedures that you must follow before going ahead with cheap bankruptcy filing florida.

Step 1: Undergo credit counseling

Due to the regulations of the Bankruptcy Court in the US, we now have credit counseling classes. To determine if bankruptcy filing is indeed the best option out there, people who file for bankruptcy are required to take two of these classes. Your town bankruptcy courts typically have a list of credit counseling classes that are acceptable for you to refer to. You then have the option of going through your credit counseling class online or on the phone.

Second Step: Complete the required forms

You can obtain a copy of the bankruptcy forms that you need to sign by downloading these at the US Bankruptcy Court website. Giving personal information about your financial standing, debts, assets and income are typically required in these documents. Make sure you complete the required fields thoroughly and with accurate, up-to-date information. This website also has a wealth of completed sample documents to use as a guide. The completed documents should be submitted at the court of bankruptcy.

Third Step: Decide upon the appropriate bankruptcy chapter for your situation

Certain bankruptcy chapters entail responsibilities of a different nature. For instance, in chapter 7 bankruptcies, you're completely liquidating your assets. In a chapter 13 situation, you're setting up a schedule by which you can repay your creditors over a period of time - usually within three to five years or so. You must make sure you have figured out which of the chapters is relevant to your financial situation.

Fourth: Supply a list of all creditors

You need to submit a list of creditors and information about them in court, as it is one of the important documents to be submitted. Be certain that your list is filled out in full with accurate information of your debts to each creditor. If the information you supply is not complete they may require another fee to enter the additions.

Step 5: Pay your fees

If you want to know how much all of your fees are going to add up to, contact your local bankruptcy court. You will most likely need a money order to pay fees in a bankruptcy court. Be certain you have copies of the money orders you send out to serve as evidence of your payment if it is needed.

Step 6: Submit whatever your area's bankruptcy court needs in order to process your filing

Find the closest bankruptcy court and submit your money orders, forms and counseling certificates. Once you've taken care of all the requirements, you will get a letter in the mail as proof you've filed bankruptcy.

When it is not possible to meet your financial obligations, you could declare yourself as 'bankrupt' and thus get a fresh start along with a new direction to move ahead.

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