Educating yourself on the filing procedure should be your initial step. Your local library will have some useful resources, you can conduct online research, and a decent bookstore will have a wealth of information on bankruptcies. This will give you a head start. Additionally, you must investigate any requirements that your state may have.
There are various types of bankruptcy. Chapter 7 is the most common form of bankruptcy filing. There is, however, a Chapter 13 reorganization as well. If your situation is dire and you cannot see a way to restructure your debt with a limited income, even if you file for Chapter 13, you will end up with a Chapter 7; therefore, don't squander your time and money.
It is essential to emphasize that all paperwork must be accurate and comprehensive. If not, your documentation will need to be redone, which will incur additional fees. Be extremely trustworthy and thorough with your documentation.
After gaining a basic understanding of the procedure, you will be required to complete a means test, in which you compare your gross income to the average gross income in your area. If your income is reduced, you have satisfied one of the Chapter 7 bankruptcy requirements.
The next stage is to compile a list of your creditors and their respective balances. Ordering a personal credit bureau report from at least three credit reporting companies is a fantastic method to ensure you receive all of them. If you do not know who they are, your local bank that offers mortgages for real estate will be able to provide you with this information. You must calculate your discretionary income. You arrive at this figure by subtracting your monthly payments from your aggregate monthly income.
You must complete a debt management course to fulfill the requirement. However, it is relatively harmless, takes only a few hours, and costs less than $100. It will be beneficial to your education as well. Once you have successfully completed the course, you will receive a certificate of completion that must be included with your application. Occasionally, you may be able to submit your documents online; however, if this is not the case, you will need to submit your documents at the courthouse. There will be a posting fee.
It is your right and privilege to start over when you find yourself in such a predicament; this is why there are bankruptcies. It requires effort, but it will be resolved in approximately six months.""
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