How to Declare Oneself Bankrupt

It can happen too many of us, going bankrupt, that can be something which is not easy to take and is devastating at the best of times because it can be an area that we haven’t explored until it happens to us.  That is why even when you think your money is OK and that your finances are actually in a great position possible that you can’t get any worse but then you find that everything starts to fall apart and then you have to take drastic action.

When you file for bankruptcy then you could do that whether you are an individual or if you have got a business but you have to be in a position which your finances are completely in ruin and that you cannot actually pay back your debts.

There are more than just one form of bankruptcy however because it really all depends on your debts and their amounts and what you are really bringing in and what you have in form of possessions.  Though with bankruptcy then this can be your last option for your debts which usually will be a large amount.

So how can you declare yourself bankrupt?

bankruptcy

Bankruptcy

What you first have to do is to get everything concerning your finances all in order; this is so that you have got everything with you like the costs of bills and debts, any income that you have, expenses and of course a list of any assets that you have.  Then take these and bank statements and any tax returns – a copy of these – to your lawyer in which will file your bankruptcy claim.

There is bankruptcy such as chapter 7 that will be for those that have small incomes and really don’t have any assets to pay your debts off again.  With this then non exempt assets can be then liquidated so that your debts can be paid back.

Unlike chapter 13 which can say that you can repay the debt back within two to five years but you are going to be able to keep your home with this unlike chapter 7.

You should really think about getting some credit card counseling so that you can see if you can solve your debt problems or find a way for you to pay back before you file bankruptcy though this has to be done at least six months before bankruptcy.

You are going to have to go to your lawyer or any lawyer so that you can start a petition for bankruptcy or you may find that you can file yourself in a court.  These forms can be found online in the US and it is going to cost you almost twenty hundred and fifty dollars and if you have a trustee in place then it will cost around fifteen dollars.  This is for chapter 7 bankruptcy however but for chapter 13 it is a little cheaper for filing.

You should be going to all bankruptcy hearing which is around a month or longer after you have filed which means that you will be seeing your creditors while in court.

If the paperwork is filed correctly then the court dates will be much smoother, if you are going with chapter 13 then you can pay the debts within the allotted time or you will be declared bankrupt.