How to Declare Chapter 7 Bankruptcy
There are thousands of people who are forced to declare bankruptcy every day. It is nothing to be ashamed of because sometimes things are just beyond your control and you are forced to do something to survive. If you have lost your job and your bills are just more than you can handle, you should probably consider filing for Chapter 7 bankruptcy.
How to Declare Chapter 7 Bankruptcy
- Make a list of all the debts you owe. This should include every debt, even the ones that you are not behind on. Do not omit anything or anybody.
- List all the minimum payments you are required to pay on each debt.
- Prepare a list that shows how far behind you are on each of the debts, which is referred to as "arrears."
- Make a list of all your earnings, assets, money you have in the bank and any other money you have coming to you.
- Contact a bankruptcy attorney to schedule a consultation. Most attorneys offer first consultation at no charge. Some attorneys will even do the consultation over the telephone.
- Sign up for a credit counseling for bankruptcy session with a certified counselor, which is a legal requirement before you can file for bankruptcy. You will be issued a certificate after completing the session, which you will have to produce when you file your bankruptcy petition with the court. There is a fee for the session, which is approximately $50 in most states. Some counselors may waive the fee, depending on your circumstances.
- Hire an attorney to prepare your petition for bankruptcy or you can prepare the paperwork yourself. If you prefer to do it yourself, contact the court and they will be able to send you a link to the forms you will need to fill out.
- Prepare the paperwork and submit it to the court along with a filing fee, which is approximately $300 in most states.
- Attend the court date appointed to you. This is referred to as a "meeting of the creditors", which is just a formality. It is an informal meeting in front of a judge and should take approximately 5 to 10 minutes.
- Wait for the bankruptcy to become final.