How to File Bankruptcy

There are many reasons that people file bankruptcy. Some people wish to eliminate their legal obligation for debts because they are unable to repay them. Others are seeking to stop foreclosure on their home or repossession of their vehicle. There is perhaps a different reason to file bankruptcy for each individual in a debt situation. Knowing how to file bankruptcy can be the first step in getting a clear mind about your finances.

Before you file bankruptcy you should decide which of your debts you are seeking to get rid of. When you are determining the debts you wish to file bankruptcy for, be aware that all debts cannot be discharged. Child support, alimony, student loans, debts from a divorce, and income taxes are a few of the debts for which you will not be able to file bankruptcy.

While it is possible to file bankruptcy without an attorney, it might be difficult for you to do so. There are many laws regarding bankruptcy that you might not be able to interpret without the assistance of professional legal counsel. If you do not already know of a lawyer, you can ask friends or family for a recommendation. The American Bar Association can give information about lawyer referral services in your area. Choose a lawyer that has prior experience in handling bankruptcy.

Once you have hired an attorney, he or she will assist you deciding the right Chapter in which to file bankruptcy. The two ways to file bankruptcy is under Chapter 7 and Chapter 13. The basic difference between the two ways to file bankruptcy is that under Chapter 7 property can be liquidated for the repayment of all or part of the debt. Under Chapter 13 a plan is put together and you repay all or part of the debt. Your attorney will also be able to give you help in filling out the forms and deciding which debts to include.

Knowing how to file bankruptcy can help you get started on the right track. An attorney can give additional assistance with the process.

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