About Filing Personal Bankruptcy

Filing bankruptcy may not be an easy thing to do for some people. Although it gives people a chance to start over financially, it can still be emotionally devastating. Bankruptcy laws are strict regarding debt. If you can repay some debt according to court findings, the chapter you must use may not be exactly what you expected. Understanding what you need to do when you file is important to putting your debt behind you.

Bankruptcy Attorneys

Bankruptcy attorneys can help if you have a large amount of debt or property to protect. Most lawyers offer free consultations and advice. However, the fees may cost as much as $3,000 or more if they take your case.

Filing

If you do not have assets, consider filing Chapter 7. If you have enough income to repay debt over 3 to 5 years, you may need to file Chapter 13. You list every expense, debt and personal property you have on the bankruptcy forms regardless of filing status. 

The court schedules a meeting within 30 days of receiving your case forms to go over debt and any other concerns regarding your case. Creditors do not need to appear at the meeting unless they have claims to your assets. You appear in order to answer all questions about your filing, including your ability to repay some debts.

Counseling

Before you file, obtain debt counseling to see if you qualify for bankruptcy filing. Counseling may cost anywhere from $5 to $100 to complete. The court will not accept your case if you do not take the class and submit a signed certificate stating the date and time you took the class. After the creditor meeting, you need to take a debt analysis class. The class helps you understand debt and how to better manage your finances.

Discharge

Discharge of any debt usually takes 3 to 4 months depending on the court and your case. Some courts discharge debt 90 days after the creditor meeting.