- When you are ready to begin the bankruptcy process, you must go to your local court and file for bankruptcy. This is known as completing a petition for bankruptcy. Without this petition, the process cannot begin. In addition to completing the petition for bankruptcy, you also have to pay a filing fee to your county clerk. If you cannot afford to pay the fee, you could fill out a request to pay it in installments or to have the fee waived.
- After filing for bankruptcy, you will be asked to attend some hearings with the court. The first hearing will basically be to go over the basics of your case and to appoint a trustee to you. You have to attend the hearing or your case could be dismissed. The court will also order you to attend credit counseling and attend a creditors meeting with your trustee. If you miss any of the appointments, you could miss out on the opportunity for bankruptcy.
- During the case, you will have to abide by the rules of the court when providing financial documentation. The trustee will request to see your financial documents such as your bank statements and investment account statements. You will also have to submit to the authority of the bankruptcy trustee and judge. The trustee has the right to take much of your property and sell it if you are filing for chapter 7. If you are filing for chapter 13, the bankruptcy trustee can set up a payment plan for you with your creditors.
- When you file for bankruptcy, you can choose what type of bankruptcy you would like to file. This does not necessarily mean that you will qualify for what you request. Chapter 7 releases the majority of your debts, but you have to meet the qualifications for this type of bankruptcy. Otherwise, the bankruptcy court will recommend that you apply for chapter 13 instead. For chapter 7 bankruptcy, you have to pass a means test that shows you do not have enough money to repay your creditors.
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