HOW TO FILE FOR BANKRUPTCY

If you are facing extremely difficult financial situations and have determined that you will be unable to repay the debts that you owe, you may want to find out how to file bankruptcy. Bankruptcy is a federal case that is handled through local districts throughout the country, and although each district might have its own slight variations, the process is generally the same in each.

The first thing you will need to do to filebankruptcy is file a petition with the clerk's office of the federal bankruptcy court. This petition is a list of all your creditors, the amounts you owe each, a list of all your sources of income, a listing of all property you own and itemization of its value, and a detailed expense budget covering your everyday needs. It is important to realize that this is an official document for a federal bankruptcy court, so not only do these figures and listings need to be complete and as accurate as possible, but the also need to be "backed up" with all the relevant documentation, such as deeds, mortgage papers, tax returns, any notices of garnishment or similar penalties, credit card, medical, and utility bills, as well as loan and bank statements.

You should be aware of the different types of bankruptcy and obtain the appropriate forms for filing. There is usually a modest fee that covers filing costs, and the court may sometimes permit you to pay this fee in installments. Once you have filed your bankruptcy papers you will be issued a "case number," which is the reference you will need whenever you are handling issues concerning your bankruptcy. A trustee will be appointed to look over the documents and paperwork associated with your case, and it is important to get any clarifications you need at this time. Then you will be required to attend a "meeting of creditors," which is a brief meeting in which the court reviews your paperwork.

Following these general steps, there is a waiting period that can take several months. During this time it is important to begin exploring your options and begin ways to make your financial control as tight as possible. There are many reliable resources online that you can consult to help get the information you need to get yourself back to financial well being. Finally, you will receive notice form the bankruptcy courts that your debts have been discharged, brining your bankruptcy case to a close.