When it is clear that your only way out of debt is to file a bankruptcy, you will need sound and up to date information about filing a bankruptcy in order to conduct your bankruptcy filing as efficiently as possible. Because a bankruptcy filing is bound by law to a predetermined set of steps that together make up the procedure of filing a bankruptcy, it’s easy to find out which steps you will have to take when you file a bankruptcy. If you are filing a bankruptcy with the assistance of a lawyer, he or she should always instruct you about the steps you need to take for a correct bankruptcy filing. However, if you want to file a bankruptcy without a lawyer, or you haven’t yet found one, it is helpful to have an overview of the steps necessary for a bankruptcy filing.
The first step you will need to take when you file a bankruptcy is to get credit counseling help. Within six months before each bankruptcy filing, the debtor is obliged by law to seek advice at a credit-counseling bureau. Basically this means that you will be informed about all the consequences of filing a bankruptcy, as well as any alternatives to bankruptcy filing that may apply to your situation. The next step in a bankruptcy filing is to take the means test. The means test compares your income to the state median and, based on the outcome of this comparison, determines whether you must file chapter 7 or chapter 13. From this point on your bankruptcy filing is geared towards complying with all rules of the applicable chapter.
If you are filing a bankruptcy under the law of chapter 7, you will be preparing a chapter 7 bankruptcy petition which is much less complicated than a chapter 13. If you need to file a bankruptcy under the laws of chapter 13, you need to prepare both a chapter 13 petition and a reorganization plan for the court to approve. It is to be advised, when filing a bankruptcy, to get professional help to prepare your petition. The success of your bankruptcy filing depends for the most part on your petition, and you must always prepare this with attention to detail and correctness. When you have filed you petition with the court, the next step in filing a bankruptcy is attending the meeting of creditors that will be overseen by your trustee, who is appointed by the court when you file a bankruptcy to ensure the bankruptcy filing is conducted correctly. After the meeting of creditors, if nobody objects to your bankruptcy filing, your assets will be liquidated or reorganized, depending on the chapter you are filing.
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