Understanding Filing With The U.S. Bankruptcy Court
Filing for bankruptcy is a very personal decision. Usually it is also a last resort when a person sees no other way of getting out from under their heavy debts. It really is a good thing that this is considered as a last resort because once you choose to file a petition for bankruptcy with U.S. bankruptcy court the consequences will follow you for seven to ten years. However, on the plus side, you are protected and you will also get relief from your debts under the Bankruptcy Code. If you still are considering filing bankruptcy, then you should become familiar with the procedures and exemptions, which vary from state to state.
The Process Of Filing Bankruptcy With The U.S. Bankruptcy Court
The first thing that you will have to do whenever you file for bankruptcy is gather together all of your personal financial information, including your existing secured and unsecured debts. You will also need your tax returns for the past two years. Your deed documents, including real estate that you own, your car title, your land title and other such loan documents also need to be gathered up. It is also a good idea to get a copy of your credit report, which will provide you with some other helpful information.
After you have all of your paperwork gathered together in one place, you can either hire a bankruptcy lawyer or you can file the paperwork with the U.S. bankruptcy court yourself. If you choose to do it yourself, you will need to get the bankruptcy forms online and then fill them out. These forms will ask for your current financial status and your financial transactions from the past two years. You also need to decide if you are going to file a Chapter 7 or a Chapter 13 bankruptcy. While Chapter 7 is preferable, not everyone is eligible for it. If you choose to file for Chapter 13 bankruptcy you will need to enclose a proposed repayment plan with your petition. After all of this paperwork is done, it is time to file it with your local U.S. bankruptcy court.
Once your petition has been submitted to the U.S. bankruptcy court you will immediately be protected by the bankruptcy code. This means that your creditors will not be allowed to contact you directly or make a claim to any of your property.
Within a month of filing with the U.S. bankruptcy court a trustee will call for a meeting of your creditors and their lawyer. You negotiating with your creditors will resolve any objections that are raised here. If a compromise cannot be reached, then a judge will intervene. When no challenges are raised your bankruptcy will move forward. Between four to six months after it is finally discharged, the U.S. bankruptcy court will notify you of this.