How to File Bankruptcy
If you are trying to figure out how to file bankruptcy you are probably in a tough situation at the moment. Declaring a bankrupt state is never an easy thing to do no matter what the circumstance may be.
At this point you have probably already gone over all of your options only to arrive at a bankruptcy conclusion. The decision to file will stay on your credit record for up to ten years following the original filing. While this may seem like bad news, remaining on your current path is probably a worse option. Bankruptcy laws were put in place to protect the individual that cannot get out of debt, which is why you have every right to seek shelter beneath these laws. The first step regarding how to file bankruptcy is to seek consumer credit counseling from a U.S. Trustee.
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The Bankruptcy Abuse Prevention and Consumer Protection Act requires that all people visit with a U.S. Trustee within 180 days of filing. This trustee will then go over all possible debt repayment options. If the trustee finds that falling into a bankrupt state is the only logical course of action, then you must decide what kind of Chapter to file. Most people file under Chapter 7 or Chapter 13 depending upon their individual case. Chapter 7 includes a complete liquidation while Chapter 13 includes a repayment plan.
Since many people were taking advantage of the Chapter 7 filing, this has become difficult to do. Most people will find themselves working with Chapter 13 when all is said and done. At this point it is wise to hire a bankruptcy lawyer. Some people feel that they do not need a lawyer, but these people often become confused and lost within the system. A good bankruptcy lawyer will be able to go over all the rules of filing with you, determine the best Chapter for you, and set the paperwork into action. Finding a great bankruptcy lawyer is the best way to file. Now that you know how to file bankruptcy, you can start that lawyer search.
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Look for a smaller firm that will put you directly in touch with a lawyer. You should be able to contact your lawyer whenever you have a question…and they should have the answer for you within a reasonable amount of time. Finding a lawyer that you are comfortable with is the best way to get through this difficult time.
Learning how to file bankruptcy initially is not difficult. However, the process does become rather complex once you decide to file, which is why a good lawyer is always your best defense.