How to File for Bankruptcy - Steps to an Easy Petition
When people think about filing for bankruptcy, one of the most intimidating aspects is all the paperwork involved in the process.
With the passage of the 2005 amendments to the federal bankruptcy laws, a whole stack of documents must be filled out and submitted to the courts in order for the case to be initiated and not quickly dismissed for a lack of proper filing.
But for a quick, simple petition, there are only a few requirements that consumers must meet.
First, debtors must file a petition that consists of three pages of information, as well as a statement of their Social Security Number.
Also, a list of all of the creditors must be submitted.
This is referred to as the mailing matrix, as it lists the names and addresses of creditors that will be sent notice of the bankruptcy filing.
Finally, consumers must also file a copy of their certification that they have completed pre-bankruptcy credit counseling.
Everyone who files for bankruptcy must complete a credit counseling course, which is usually $30 or $40 or so, and offered by various companies online.
And that is all that is needed for an emergency filing with the minimum of documents.
Of course, all of the other paperwork, schedules, and proof of income and assets must be filed later on in a timely manner, but in time-sensitive cases, the courts only need a small amount of information to open the case.
Even the filing fee of $299.
00 is not strictly required at the time of filing.
People can pay the fee over 120 days in installments, or apply for a complete waiver.
Once the case is filed, the debtors will have to provide a number of other forms and documents to have a completed petition.
If they fail to complete the petition in a reasonable amount of time by filing the rest of the paperwork, then the case will be dismissed and they will not get a discharge of their debts under Chapter 7, or be able to work out a repayment plan under Chapter 13.
So it is important to know what information will be required.
These other required documents include various schedules that list information regarding the debtor's financial life that the court will want to examine.
Also, income and expense reports, and a list of exempt and nonexempt assets is to be included.
A means test to determine eligibility for Chapter 7 bankruptcy is also required, as creditors forced a change in the bankruptcy code to make it more difficult for everyone to file for a total discharge of their debts.
People should also be aware that local bankruptcy courts may have an extra form or more that must be filled out.
Calling or visiting the court in question is often the best way to be informed of any local filing rules, as a failure to include these local or regional forms may result in the case being thrown out for no other reason.
The clerk of the court can usually help with information on local rules or provide copies of the forms that must be included.
With the passage of the 2005 amendments to the federal bankruptcy laws, a whole stack of documents must be filled out and submitted to the courts in order for the case to be initiated and not quickly dismissed for a lack of proper filing.
But for a quick, simple petition, there are only a few requirements that consumers must meet.
First, debtors must file a petition that consists of three pages of information, as well as a statement of their Social Security Number.
Also, a list of all of the creditors must be submitted.
This is referred to as the mailing matrix, as it lists the names and addresses of creditors that will be sent notice of the bankruptcy filing.
Finally, consumers must also file a copy of their certification that they have completed pre-bankruptcy credit counseling.
Everyone who files for bankruptcy must complete a credit counseling course, which is usually $30 or $40 or so, and offered by various companies online.
And that is all that is needed for an emergency filing with the minimum of documents.
Of course, all of the other paperwork, schedules, and proof of income and assets must be filed later on in a timely manner, but in time-sensitive cases, the courts only need a small amount of information to open the case.
Even the filing fee of $299.
00 is not strictly required at the time of filing.
People can pay the fee over 120 days in installments, or apply for a complete waiver.
Once the case is filed, the debtors will have to provide a number of other forms and documents to have a completed petition.
If they fail to complete the petition in a reasonable amount of time by filing the rest of the paperwork, then the case will be dismissed and they will not get a discharge of their debts under Chapter 7, or be able to work out a repayment plan under Chapter 13.
So it is important to know what information will be required.
These other required documents include various schedules that list information regarding the debtor's financial life that the court will want to examine.
Also, income and expense reports, and a list of exempt and nonexempt assets is to be included.
A means test to determine eligibility for Chapter 7 bankruptcy is also required, as creditors forced a change in the bankruptcy code to make it more difficult for everyone to file for a total discharge of their debts.
People should also be aware that local bankruptcy courts may have an extra form or more that must be filled out.
Calling or visiting the court in question is often the best way to be informed of any local filing rules, as a failure to include these local or regional forms may result in the case being thrown out for no other reason.
The clerk of the court can usually help with information on local rules or provide copies of the forms that must be included.
Source...