Best Tips on Applying For Bankruptcy

File for Bankruptcy Best Tips on Applying For Bankruptcy

Best Tips on Applying For Bankruptcy

Bankruptcy is a highly bureaucratic process. There are a lot of steps, paperwork, and appointments for debtors to accomplish before they can discharge their debts. The burden of all that bureaucracy may deter some people from filing for bankruptcy in the first place, even if they may benefit from it.

That's unfortunate because bankruptcy is an important first step for many people to get their financial situation back on track. But filing and completing all the bankruptcy requirements doesn't have to be difficult. DoNotPay can determine what kind of bankruptcy will benefit you, and then file for you.

What Kinds of Bankruptcy are There?

There are many kinds of bankruptcy. According to Ramsey Solutions, there are six different kinds of bankruptcy:

  • Chapter 7. Debtors will liquidate their non-exempt assets (second homes, expensive stuff, stock) to pay off unsecured debt. Any debt that isn't covered by the liquidation will be erased
  • Chapter 9. This type of bankruptcy is only for municipalities, not individuals
  • Chapter 11. With chapter 11, businesses get help from the courts to reorganize their debt and formulate a repayment plan
  • Chapter 12. This type of bankruptcy is only for family farmers
  • Chapter 13. Debtors will get help from the court to reorganize and come up with a plan to pay back their debts
  • Chapter 15. This is for foreign entities

The first step in filing for bankruptcy is determining which kind you will file for. Most individuals will choose between chapter 7 and chapter 13. 

Unfortunately, what type of bankruptcy you file for isn't always up to you. There are income requirements for each kind, and you may be forced to file for one or the other based on your circumstances.

How to File for Bankruptcy On Your Own?

According to Upsolve, there are a lot of steps to filing for bankruptcy:

  1. Get your important documents together
  2. Take credit counseling
  3. Complete the forms
  4. Pay the filing fee 
  5. File the forms with the court
  6. Mail your important documents from step one to your court-appointed trustee
  7. Take your second bankruptcy course
  8. Attend a meeting with your creditors 

There may be additional steps depending on your assets and the kind of bankruptcy you are filing for. Here are some important things to learn about before beginning the filing process:

Documents

Bankruptcy is a very bureaucratic process, and there's a lot of documentation involved. Here's a small sample of some of the documents you'll need: 

Form:Reason It Is Necessary:
Tax ReturnsTo show how much income you have claimed with the government
Pay StubsTo show how much you are bringing in week over week
Bank statements, retirement account statements, and brokerage account statementsTo give an accurate view of how you have spent and managed your money
Real estate appraisals for all your propertiesTo determine the value of the total property that you own
Vehicle registrationsTo show your ownership stake in your vehicles

Credit counseling

Before filing, you'll need to go through credit counseling. There's a fee for this counseling, and you'll need to spend an hour or so completing it.

Forms 

There are about 70 pages of forms to fill out when you file for bankruptcy. You'll probably need information from your important documents to complete them.

These are just a few of the requirements for bankruptcy filing. It's a long, arduous process that will take up a lot of your time and energy. Unless you go with DoNotPay.

DoNotPay can help you file for bankruptcy, from picking which chapters to file for to helping you find a credit counseling course.

Filing for Bankruptcy with DoNotPay 

If you want to file for bankruptcy but don't know where to start, DoNotPay has you covered in 5 easy steps:

  1. Search for File for Bankruptcy on DoNotPay.

     

  2. Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.

     

  3. Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.

     

  4. DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.

     

  5. Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.

     

And that's it! Once done, the court will give you:

  • Your bankruptcy case number
  • The name of your bankruptcy trustee
  • The date, time, and location of your meeting with your trustee

At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. Your trustee will then contact you for further financial documents you will need to provide. Make sure to attend your meeting as well as complete the post-filing bankruptcy debtors course! 

What Else Can DoNotPay Help With?

DoNotPay isn't just for bankruptcy. It offers a lot of automated products, including products to:

All of DoNotPay's services are fast, easy, and automated. You'll get what you need in no time.

Filing for bankruptcy may be daunting, but it doesn't have to be hard. DoNotPay can get you set up in just five easy steps. Check out their bankruptcy product today!

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