Claiming bankruptcy is one of the most used methods for getting oneself out of severe debt by legally declaring the inability to pay these debts. It is not something that is there to be abused by re-offenders; bankruptcy is a service that is available for those who have fallen on hard times and provides them with a fresh start financially. However, making a bankruptcy claim is not something that should be entered into without fully realizing the repercussions as well as the benefits. One should consult with a bankruptcy attorney in order to achieve the best successful outcome possible for their petition. If you have been wondering how to claim personal bankruptcy then please continue reading.
As briefly mentioned previously, consulting a bankruptcy attorney prior to claiming bankruptcy is very important. There is so much information to absorb and several mistakes can be avoided if you seek the appropriate help and advice. You may even find an alternative to filing bankruptcy if this is an option that is open to you. If it is not, then here is a step by step guide on how to claim personally bankruptcy:
1. Decide upon the type of bankruptcy that you wish to file for. Most people apply for either a Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 bankruptcy is a means of totally wiping out unsecured debt while a Chapter 13 bankruptcy takes the form of a repayment plan that is spread out over a maximum of five years.
2. Decide upon the type of help (if any) you will seek in making your bankruptcy claim. Several people go it alone but there are cheaper alternatives to a fully fledged bankruptcy attorney such as: legal secretary, law school, bankruptcy software, bankruptcy preparation service or the credit counseling agency.
3. By law you have to attend a credit counseling course 6 months prior to filing bankruptcy. You will be given a certificate of completion which you must keep safe as you will need to show it to the bankruptcy court.
4. Compile all your documentation together; details of income, expenditure, assets and debts, proof of income, details of savings, tax records etc.
5. Once your case has been filed you will have to pay the filing fee of approximately $300. You need to wait for the date of the meeting of creditors which you must attend. If everything is in order it will only be a matter of months before your debts are discharged/repayments commence.
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