Bankruptcy Procedure For an Individual

Bankruptcy procedures can seem overly complicated when you start looking through the various documents that make up the legislation. For this reason it is always a good idea to consult with a legal professional to make sure all the details are covered.

You will find a below a general guide as to the procedures you will go through when filing for bankruptcy.

Bankruptcy Procedure #1 – Apply for credit counseling

It is now necessary for you to have received credit counseling at some stage in the 180 days before you put in your bankruptcy petition. Therefore if you think you are going to file for bankruptcy, make sure you receive some credit counseling before you lodge your forms.

Bankruptcy Procedure #2 – Hire an attorney

Your next step is to hire an attorney. They will help you decide whether to file for Chapter 7 or Chapter 13 bankruptcy, and then will help you correctly follow all the other procedures that follow. They will let you know exactly what forms are to be submitted with your petition, and what supporting documents they need to help them create a submission that contains all the necessary information.

The documents they require will be related to such things as income, banking, assets, debts, creditors etc.

Bankruptcy Procedure #3 – File your petition

You will file either a Chapter 7 or a Chapter 13 bankruptcy petition, depending on whether or not you are going to try and pay back part of your debts.

After your petition has been filed there will be a court hearing to determine whether you placed into bankruptcy. In the majority of simple cases involving individual bankruptcy, and where all the documents are in order, this hearing will be quite short.

You will then receive your discharge notice within the next 2 months. This notice is proof that all your debts have officially been discharged and you should therefore file it away somewhere safe.

Obviously this is a very simplified version of all the bankruptcy procedures you will need to go through but they give you a general idea of how things work. Be sure to get some legal assistance to ensure the process runs smoothly and you can get your financial situation off to a fresh start.

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