Filing Bankruptcy On Your Own
Once you’ve determined that inevitably you must file for bankruptcy, you must now decide if you need the services of an attorney and which chapter of bankruptcy you must file under. Each chapter of bankruptcy filing process varies.
Chapter 7 allows a person or family in debt to liquidate all their assets and collateral into money in order to make repayment and finish with a clear credit report. This chapter also keeps creditors from going after you or your property outside of bankruptcy court.
Chapter 11 is used mainly for corporations, sole proprietorships and small businesses to reorganize their debt. With corporations, there’s not a single individual held responsible but in the cases of sole proprietorship the owner is liable along with the business for any debts owed. Chapter 12 bankruptcy is for agricultural purposes when a family is trying to save a farm, particularly a farm that’s been in the family for two or more generations. Chapter 13 is designed more specifically for individuals who have lost their job or are now disabled due to an accident and are unable to make mortgage payments, pay off credit cards, or basic monthly expenses.
Except for a few specific variants, there is a general process for filing bankruptcy on your own. You need to compile a list of all your creditors and the exact amount of debt owed. Next, determine all your sources of income and the total amount. You must also note all properties you own and any collateral or assets you’ve acquired. Your monthly living expenses need to be totaled. To start the legal process, you need to complete and submit the appropriate forms and then file your proposed repayment plan with your local federal court. The court then orders all your creditors to desist all collections processes against you. Within weeks, you should be notified of the 341 Meeting where your attendance is mandatory. It is a brief hearing when creditors are allowed their only opportunity to question your repayment capabilities and any exemptions you request.
A judge will then deny or approve your submitted repayment plan. Within 30 days, you must begin your repayment process and see your plan through to its completion. Once all your debt is repaid, in accordance with your plan, you’ll receive a legal document of discharge which clears you of remaining debt. With your official discharge document, creditors are prohibited from trying to collect any remaining debt or take any legal action against you.
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