http://www.debts.org/index.php en info@debts.org Copyright 2008 2008-12-01T15:28:00+00:00 http://www.debts.org/11/index/how_to_file_bankruptcy/ http://www.debts.org/11/index/how_to_file_bankruptcy/#When:09:12:00Z Bankruptcy proceedings are straightforward and not to be feared. If you have explored all your alternative options and feel bankruptcy is the best solution to your debt problems then the following information will help you get started.Debt problems are stressful and in times of great stress people often make the wrong decisions. Take care to consider all of your options before filing for bankruptcy. Visit our pages on bankruptcy alternatives to help you decide whether bankruptcy is in fact the best solution for your debt. More... Under the Bankruptcy Abuse Prevention and Consumer Protection Act ("BAPCPA") 2005, an individual must obtain some consumer credit counseling within 180 prior days to filing bankruptcy. Such counseling, approved by a trustee, is intended to provide an individual with alternatives to filing a bankruptcy case. (The BAPCPA had the kind of affect on bankruptcy figures desired most by creditors. In 2004, around 1.5m people applied for bankruptcy in the United States, however in 2007, that figure had plummeted to 750,000.)Steps to Filing Bankruptcy Chapter 7 | Chapter 131. Consider your bankruptcy options.There are two main types of bankruptcy to consider. The most popular is chapter 7 (as discussed in this section – which is a straight or liquidation bankruptcy), or alternatively there is chapter 13 (a repayment plan for individuals). Note:  The means test under BAPCPA has made filing for chapter 7 more difficult. 2. Get a lawyer. Everyone’s circumstances are different; therefore it is vitally important to source a lawyer who has extensive bankruptcy experience. A good lawyer will also improve your chances of keeping your home. While it is possible to file without hiring a lawyer, you won’t find a recommendation for doing so here. In addition, try to avoid large firms who may only appoint you a paralegal and not the lawyer. Direct contact with the lawyer will eliminate any unnecessary stress. 3. Liaise with the lawyer.Meet with the lawyer you’ve selected and go over your “case.” Your lawyer will determine which chapter is most appropriate for your financial circumstances. A lawyer will also help you when it comes to completing the BAPCPA’s means test.4. Discuss the fee.Fees can vary and depend on whether you are required to pay a flat fee or a fee reflecting your level of debt. A flat fee is almost always the better option. The average fee is $1,700 but can vary depending on where you live, however, there are some places that will file for free if you are not able to raise the finances. The attorney’s fee for a chapter 7 case must be paid in full before the case is filed. If you still owe an attorney part of the bankruptcy fee when you file a chapter 7 case, it becomes uncollectable and the attorney must either waive the unpaid balance or cease working on your behalf. In a chapter 13 case, however, the entire attorney’s fee can be paid through your chapter 13 plan. Naturally, this must be agreed with your lawyer at the outset.5. Protection from creditors. At this stage you can start referring all creditors to your lawyer’s office. Acting on your behalf, the lawyer will receive all further correspondence from creditors – so you no longer have to dread the mail. Once your lawyer has filed your case, the “automatic stay” goes into effect whereby no creditors should be contacting you. 6. Wait for a creditors meeting.You will be notified of your creditors meeting (or a ‘341 meeting’) after your lawyer has submitted your petition. This meeting allows the trustee to ensure that you have given truthful answers on your bankruptcy petition and that you understand and agree to filing for bankruptcy. Debts recommend you meet with your lawyer ahead of the meeting to ensure the bankruptcy petition has accounted for all your debt.7. Stop using credit cards.If you are even considering bankruptcy you should stop paying with plastic. A creditor can easily challenge any previous transactions when the bankruptcy takes affect. You may find it difficult to prove you used credit before planning a bankruptcy file. In such an event your debt will would not be discharged by bankruptcy.8. Assets assessed.With a Chapter 7 bankruptcy, the trustee will assess if any assets can be sold to repay your creditors. A report of no distribution will be filed with the bankruptcy court if the trustee is happy no assets are of adequate value.In a chapter 7 case, you may never have to repay creditors. Whereas with chapter 13 bankruptcy, you will be required to enter into a 3 to 5 year repayment plan – determined by the BAPCPA means test.9.  Debts dischargedCreditors have 60 days after your meeting to file lawsuits challenging the discharge of a particular debt. If you filed chapter 7 and in the absence of such lawsuits, you will be notified of discharged debts. Remember, a discharged debt means you no longer have to honor that debt and creditors must stop contacting you.Chapter 13 notice of discharge arrives approximately 60 days after your trustee is satisfied your payment plan has been completed. Make yourself at home in our Forum and find out what everyone else thinks about bankruptcy in America. There is also our up-to-date News section for all the latest on personal finance. If you need help finding a provider or would like to review a company, please don’t go without checking out our A-Z directory. How to file Bankruptcy 2008-07-07T09:12:00+00:00