How to File for Chapter 7 Bankruptcy
Filing for a bankruptcy is a way of eliminating debt problems. However, a debtor must ensure that he or she is clear about the reasons on filing it. In How to File for Chapter 7 Bankruptcy, it is best to secure assistance from an attorney who will guide the debtor throughout the process of filing.
Here are some helpful steps in How to File for Chapter 7 Bankruptcy:
- A debtor must determine where he or she should file for a Chapter 7 Bankruptcy. If the financial situation or status of the debtor is worse and there is no other way that he or she can pay the debts, filing for Chapter 7 Bankruptcy can be the right option. On the contrary, if the debtor has a source of income and yet cannot afford to pay as agreed, the debtor can still consider filing for Chapter 13 Bankruptcy instead.
- Within the period of six months before filing for a Chapter 7 Bankruptcy, the debtor must enroll for a credit-counseling course with a certified agency provided by the office of the U.S. Trustee. The said course is in accordance to the 2005 Bankruptcy Law in U.S. The purpose of the course if for the debtor to understand all proceedings of filing or declaring Chapter 7 Bankruptcy.
- Before filing for the Chapter 7 Bankruptcy, the debtor has to pass through the Means Test that helps understand if the debtor is eligible to file the said bankruptcy. If the debtor failed to pass through the test, he or she can file for Chapter 13 Bankruptcy instead.
- A debtor must always file his or her documents accordingly. A list of the past and present liabilities, assets, and debts along with other statements of financial institutions owed should be arranged or kept. These documents are required by the bankruptcy court whereas fee is required to pay.