The Ins and Outs of the Bankruptcy Process

File for Bankruptcy The Ins and Outs of the Bankruptcy Process

The Ins and Outs of the Bankruptcy Process

No one likes being in debt. Medical debt, credit card debt, and other loans can feel suffocating. If it all becomes too much, and there's no way to pay, bankruptcy may be right for you

But getting debts erased is, understandably, not easy. There are a lot of nuances that make the bankruptcy process difficult to navigate without professional help. An expensive bankruptcy lawyer may serve to put you further in debt. Luckily, DoNotPay has the perfect solution to filing for bankruptcy. DoNotPay's bankruptcy product will help you navigate the bankruptcy process, and do a lot of the footwork for you. 

 Is Bankruptcy Right for You?

Before you file for bankruptcy, you'll need to determine if bankruptcy is right for you. There's actually a step for this built into the bankruptcy process. Before you file, you'll need to undergo credit counseling. According to Greenpath, here are some of the things your counselor will discuss with you:

  1. How much money you make and what your budget should be 
  2. The positives and negatives of filing for bankruptcy 
  3. Any alternatives you can seek other than filing for bankruptcy 

There are different types of bankruptcy. Although you will get debt relief, some types of bankruptcy require the liquidation of assets to pay off debtors. Although certain assets are exempt, not everything is. Non-exempt assets may include things like expensive jewelry or artwork, and valuable collections like stamp or coin collections. Before filing, consider if you are willing to part with some of your most prized possessions. 

What Chapter Should You File For?

There are two main types of bankruptcies for individuals: 

Type Of Bankruptcy:What It Means:
Chapter 7Assets are liquidated to pay unsecured debts, like medical bills or credit card debt.
Chapter 13Debts are reorganized and a payment plan is created through the court.

Before you file, you'll need to decide what kind of bankruptcy is right for you. There are income requirements associated with each type of bankruptcy. To file for chapter 13, you'll need to have enough money to pay off the debts after they are re-organized. For chapter 13, there are also debt limits. You can't have more than $419,275 of unsecured debt. If you have secured debt, like a house or car, the loan amounts cannot exceed $1,257,850 total. 

How to File for Bankruptcy On Your Own 

The bankruptcy process is long and difficult. It requires a lot of meetings with different entities, and a large amount of paperwork.  

Fill out paperwork 

In order to fill out the bankruptcy paperwork, you'll need your important documents. These include, but aren't limited to: 

  • Tax returns 
  • Paystubs
  • Car deeds, property titles, and other information related to assets 

Meetings, counseling, and courses

There are a lot of meetings involved in the bankruptcy process. You'll need to get those scheduled with the correct companies in the proper time frame in order to comply with bankruptcy rules. Here are all the meetings you'll need to make during the bankruptcy process: 

  • Credit counseling meeting. This is sometimes called the first bankruptcy course
  • Meeting with creditors. This is when all the companies you owe get together in court
  • Second bankruptcy course. The debtor education course is required before debts can be discharged

There are a lot of meetings, paperwork, and decisions to make during the bankruptcy process. It can be confusing and difficult. DoNotPay can help with everything, including scheduling some of your courses.

File 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!

The bankruptcy process isn't easy. DoNotPay's solution is fast, easy, and successful. Take the painful paperwork out of filing for bankruptcy with DoNotPay. 

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