Considering that the cash is not available to you, filing for bankruptcy might seem to be overwhelming experience, and this perception is, however, just a myth. The bankruptcy laws in the US will be the mastermind of alleviating the burdens of debt and financial setbacks experienced by individuals and businesses. If you find yourself in a situation where you need to file for bankruptcy but have limited funds, here’s a guide to help you navigate the process:
Understand the Types of Bankruptcy:
Different types of bankruptcies are available, but more so the individual cases constitute Chapter 7 or Chapter 13 bankruptcies. Chapter 7 is the process of turning the leftovers from the sale of your belongings into money in order to be able to pay off your debts, and Chapter 13 is the process of creating a plan on how you will be able to repay all your debts. Run a research regarding which type of bankruptcy meets your situation’s criteria.
Educate Yourself:
Check out the state bankruptcy act and the federal bankruptcy code to learn zee regulations. At websites of the bankruptcy courts which are located online you will get plenty of information.
Consider Credit Counseling:
Before proceeding to a bankruptcy filing, you may first have to attend debt counseling which must be done by an accredited agency. Look up some agencies which ensure the availability of their free or low-cost counseling services, therefore you should take your time to check the best option.
Gather Necessary Documents:
You will need assemble financial information that includes printed bank statements, tax returns, pay stubs, and the list of your assets and liabilities. If printing cost is an issue for you, try the online documents or check out a nearby library.
Fill Out Bankruptcy Forms:
Download the forms you need from the court’s website or pick up the forms from the court office. Different fashion types prompt many formats which may be filled out both online or by hand. Be thorough and careful in order to avoid adding to the transit time on an inaccurate form, if possible.
File for Bankruptcy:
When you are done with the forms, file them to the bankruptcy court the district to you. There are filing fees levied on your bankruptcy case, however, to waive such fees, you would need to meet the specified income criteria. You will be required to file a fee waiver application together with the petition. The filing service fees are usually high.
Attend the Meeting of Creditors:
Creditors Meeting is the next step you’ll be planned to attend after a Bankruptcy filing. In this hearing, you are asked questions about your financial affairs and your financial circumstances while you are being an organic. Indeed ,this does not sound comfortable but eventually it’s over and not scary as expected.
Follow Court Instructions:
Therefore, following any orders from or directions assigned by the bankruptcy court is critically important at this stage. If you failed to respond to this request, it might lead to a notice of insufficient response, meaning that your case may be dismissed.
