Bankruptcy is a federal law. Filing a consumer bankruptcy case can be complex. Learn about the specifics of filing a consumer bankruptcy case and how to work with your attorney to get the results you want.
1
Gather your records
In order to file a bankruptcy case, you need to know all your assets. You need to know all your debts. So gather up all of your bills, from credit cards to mortgage and car payment slips. Include medical bills, parking tickets, tax records and anything else that shows what you might owe a creditor. It doesn't matter if you don't know the exact amount. As a matter of fact, even if you might owe somebody money, and even if it is disputed, your bankruptcy lawyer will want to know about it.
Make a general list of everything you own. This includes all of your household goods. It also includes your bank accounts, your insurance policies and anything else which has value or entitles you to money. Don't forget to include any lawsuits you have against anyone for anything, including personal injury claims or civil rights lawsuits. Even a claim for sexual harassment is an asset of your estate
2
Find a good bankruptcy attorney
Avvo is a great place to find a good bankruptcy attorney. Check out recommendations from satisfied clients and peers. Consider whether the attorney files a lot of consumer bankruptcy cases. Consider whether the attorney is considered a leader in the field. Consider whether the attorney is board certified. Look for board certified attorneys at www.abcworld.org. Consider whether the attorney is active professionally. Check out www.nacba.com. This is the website of the National Association of Consumer Bankruptcy Attorneys.
You could also check whether the attorney has suffered disciplinary sanctions. Avvo has this information online too.
You'll want to discuss attorneys fees and costs in advance. Your attorney should give you detailed bankruptcy disclosures as well as a proposed fee agreement, in writing, at your first meeting.
3
Credit Counseling
You can't file a consumer bankruptcy case without first taking a consumer credit counseling course. Don't forget to do this. It takes about an hour or two. If you don't take the consumer credit counseling course, your case will be dismissed.
4
The Means Test - Are you eligible for Chapter 7 or Chapter 13?
You'll need to gather more records for this. You'll need pay stubs from work for the last six months. You'll need records about how much you pay on your mortgage and car loan. You'll need proof as to how much you spend per month on medical expense and communication expense. Your lawyer will ask you for other data as well. You must be very careful to be accurate about this. If you don't "pass" the means test, your chapter 7 case might be dismissed. Work carefully with your attorney. This is a trap for the unwary. The means test is how we determine whether you are eligible to file a case under chapter 7 or must file a case under chapter 13.
5
Your petition and schedules
You'll need to work with your attorney to develop a budget of your current income and expenses. So keep in mind how much you spend on housing, food, medical expenses, insurance, and other similar expenses in your household. This budget is important in developing a plan to pay your debts in a chapter 13. It is also important to see whether you must file a chapter 7 or a chapter 13 case. In chapter 13, you'll spend 3-5 years paying your disposable income to a trustee. This money will be used to pay some or all of your debts.
Once this is done, you'll work with your attorney to prepare your bankruptcy petition - the paper which takes you into court - and schedules which show all your assets and liabilities. You'll also complete a Statement of Financial Affairs.
Tell the truth in all respects. Don't hide anything. Otherwise, you could lose your right to a discharge and may even be committing a bankruptcy crime.
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