What Are Bankruptcy Forms?
Filing for bankruptcy may be one of the most unpleasant and difficult tasks in the world to do, but it can still be a quick and sometimes painless process if one is organized and efficient. It is also important to remember that the process does not simply start by filling up bankruptcy forms. It should begin with you contacting someone, a lawyer or a sympathetic but knowledgeable friend who will assist you in the process. Before that lawyer's appointment, you should get all your pertinent bankruptcy forms together in one organized pile; all papers related to your finances such as outstanding bills, bank statements, recent paycheck, copies of real-estate mortgages, car loans and income tax statements.
Your bankruptcy forms should include your petition which should be an accurate list of all the debts you owe. You have to be thorough about this because not only would your petition be dismissed, you might also be found to be federally liable for any deliberate omissions. Know the difference between "secured" and "unsecured" debts; secured debts might include your house and car and that creditors have a security interest in these. Unsecured debts are debts such as credit cards, medical bills and unpaid alimony or child support payments.
An important question to ask your legal consultant would be on what debts on your bankruptcy forms will be retained or discharged. Remember that certain debts are legally hard to discharge than others such as taxes, student loans and child support; in some states, these may not be discharged at all. Be honest about any form of income that you may have earned, even those that may have been earned incidentally. Non-reporting of such details may be enough reason for the court to dismiss your case. Have your bankruptcy forms analyzed thoroughly; you may have to make a qualitative assessment (based on the types and amounts of your debts) on what chapter you should be filing under, whether it should be Chapter 7 or Chapter 13. The current bankruptcy reform laws compel individual filers with large incomes to file under Chapter 13 instead of Chapter 7. Normally, on can choose Chapter 13 if one has a steady income.
If everything in your bankruptcy forms seems to be in order and the petition completed, you may have to review it carefully again with your legal consultant before putting in your signatures. After that is done, the bankruptcy forms can be filed online with appropriate bankruptcy court in your district. You can do this yourself as well and you can even mail the bankruptcy forms via mail. After this, your creditors will be duly informed of your petition; one positive outcome of this is that an automatic stay goes into legal effect, stopping all collection efforts by your creditors. If for some reason, it is taking quite a while for the court to inform your creditors, you can inform your creditors yourself by giving them your case number and the date on which you filed it. After filing, the courts will also assign a bankruptcy Trustee to your case who will confirm the accuracy of your bankruptcy forms. If you have been honest with all possible information, a Trustee can declare you be a "no asset" case, which means you can keep all your assets and won't have to surrender anything to the Bankruptcy Court for liquidation as payment to your creditors. At this point, ask your legal consultant about appropriate exemptions applicable to your case. Exemptions are put on some assets that you would not have to surrender; exemptions vary per state. The last steps include attending a Meeting of Creditors after which, when everything seems to be in order, a final discharge is made.
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