In the US, most people hire a qualified attorney to help them file for bankruptcy. Even though c are same all over the United States, there are some common procedures or steps you need to go through if it ever comes to filing for bankruptcy.
The first step is getting the lawyer you need. Then contact your court about the specifics of your case, including applicants filing for chapter 7 and chapter 13. You will be required to go through a credit counseling and financial management course.
You will also need to take some required documents like the means test or the your credit counseling certificate. Afterwards, you may meet with your legal counsel to file the bankruptcy petition with the court. The next step is to transfer financial assets to your lawyer.
You may also find yourself meeting your local bankruptcy trustee, too. The next step is to file the bankruptcy petition with the court. Next to filling in the petition is the schedule. You may also need to attend information sessions about your financial situation.
The next step is crucial as you prepare to meet with your lawyer. This meeting is possible in your area. In either case, the trustee will go over your documents; compare your papers with the information provided on the schedule. If you have any differences there, the trustee will settle them.
At this point is when the technically paperwork is getting mixed up. Some documents get signed, but the others are never signed.
In most cases, if the documents get signed there's no need for you to go to court. Any minor errors could cause delays.
If a meeting happens and you have problems paying fees, it happens. You will usually notify the court of this income birth. Some attorneys may take a special request to cancel any upcoming payments.
After the paperwork has been filed with the court, the trustee prepares the case file. Next is the 341 meeting. Your creditors may or may not show up at this meeting.
The trustee is in charge of ensuring that the creditors are not lied upon. The 341 meeting will also inquire into any tax owed that you have not paid yet. If you have not filed the correct tax return, the trustee may help you prepare the proper forms.
After the case file, it's the court's responsibility to verify you are mentally fit to plead. After the 341 meeting, it is your responsibility to co-trustee and any other people you require to sign a petition against you. You will also visit the 341 meeting with your attorneys and any other people you may have signed a petition against.
You will receive a notice of the 341 meeting shortly after it. If everything goes smoothly, you should receive the notice of the 341 meeting in a few days.
Before filing for chapter 13 or chapter 7, you will need to first have been discharged from one case. In most cases, this happens after a chapter 7.
The next steps and responsibilities are:
1) Make sure you stop using all credit cards.
2) You and your spouse must have a household you live in.
3) You must open a checking and savings account with a bank. Setting up a second account or signing up with a second reason account is not necessary.
4) In most cases, you must complete a consumer credit counseling course. This course must be completed every twelve months if you file for chapter 13. This course will require you to attend a credit counseling seminar.
The next steps and responsibilities are:
1) In most cases, you must also complete a financial management course. This course must be completed every four years if you file for chapter 7.
2) The rules and procedures for chapter 7 are exactly the same as a chapter 13.
In conclusion, after going through something like this, you realize there is a better way to handle your money and credit. There are debt management companies that do this for FREE, without any on-going fees or charges.