Basic Steps For Filing Bankruptcy

We all start things hoping that it will be better.

Unfortunately, sometimes things don’t always pan out as we envisaged them.

When it comes to finances, this is a common phenomenon. Today you could be doing well only for a medical condition in your family to set you up back several steps.

Whenever your finances are deep in the red, you may want to consider bankruptcy protection. In such a case, you will have to accept that you need help.

Immediately your assets can no longer match your liabilities; it means you are bankrupt. If you have evaluated all the options and consequences and have decided to take this route, following the steps is imperative.

You will need to stick to them for you to get a positive response once the case is heard.

Here are the basic steps:

Analyze Bankruptcy And Its Implications

The main consequences are loss of property, negative credit history on your credit report, and inability to file a similar suit in at least eight years. You can review this helpful page for more information on the consequences of a bankruptcy.

If unsure about the full implications of your decision, you can always rely on a bankruptcy expert. You may need to consider other options, such as debt consolidation.

At least take time to analyze the full debt situation in the light of current employment terms and potential. If the decision is final, at least start thinking of property exemptions where applicable.

In any bankruptcy, some items are exempted while others are not. Debtors will want to recoup as much as they can. So, the earlier you decide your essential assets, the better.

Hire An Attorney

Find an attorney specializing in bankruptcy. Filing bankruptcy is a legal process that requires an expert.

You need someone who can help you fully comprehend the options. They will ensure that you have a steady hand throughout this process.

The process can be long and tedious. It can also be costly for you. First, the attorney will check if you qualify for the chapter that you are filing.

Sometimes you will fail to qualify for one but do so in another. He or she will also help you renegotiate secured debts if any.

Prepare The Bankruptcy Documents

If you have a lawyer to guide you, it will be an added advantage. He or she will prepare all the documents required for this task.

Bankruptcy forms can be tricky to fill if you are misguided. The attorney will ensure that you have filled out all the necessary pages.

He or she will know which offices handle this type of case.

File The Bankruptcy

The process of filing also ensures that you get a stay of execution by your creditors. It is good to be careful with this process.

You may trust the attorney to do what is best for you. Before submitting the documents to the bankruptcy trustee, you need to pay for the fee.

If you cannot afford it, you can request a waiver.

Attend The Meetings

The trustee will arrange a meeting with you and your creditors invited. Attending those meetings is imperative.

Absconding them without proper explanation can embolden the creditors to exert pressure on you. If your documents have all the revenant, accurate, and verifiable information, the process will be smooth.

You may not need to go to court several times to clear this matter.

Attend And Complete A Financial Literacy Counseling Session

Enroll in a financial counseling class. It is a requirement for bankruptcy discharge.

The assumption is that you need help with your finances. The information is invaluable to you in the future so that you can avoid future bankruptcies.

Do not complete these sessions because they are mandatory; make sure you learn some financial literacy ideas.


Unsecured properties are released once the process is concluded. Once all parties agree, the trustee has no other decision to make apart from civilly discharging the matter.

If there are disagreements, you may file bankruptcies in the court of law for determination.


Bankruptcy will most certainly leave you in a better position than it found you. You can take time now to grow your credit score back over time.

Start by implementing some of the lessons that you learned in financial counseling, such as spending only what you have. You may also think of taking a second job or taking austerity measures.

Filing bankruptcy can solve several problems. Unfortunately, it might also create more issues about accessing credit.

If a specialist attorney guides you properly on such matters, you will have an easier time.

You will file perfect papers that will most certainly improve your chances of being granted.