File Bankruptcy Yourself – Here’s How

If you are planning to file bankruptcy yourself, also known as do it yourself  bankruptcy there are some things you may want to consider before making the final decision. The reason for filing bankruptcy will vary for many but the circumstances are all basically the same like lost jobs, high medical bills, Foreclosures, and high credit card balances that are spiraling out of control. If you are currently experiencing any of these situations, you are more than likely ready to declare bankruptcy. The question is should you file bankruptcy yourself, or have a qualified company that specializes in bankruptcies of all types, provide this service for you?

When Filing Bankruptcy Yourself Information Is The Key

When filing bankruptcy yourself, you will need to spend a lot of time educating yourself about all the different types of bankruptcies as well as the laws regarding them. Each state is different and requires you to go about the process in a different way, but the outcome will normally remain the same depending on your debt to income ratio.

You can find all the information you need about bankruptcies and how to file from your local library. You can also do a lot of the research online and simply combine the information and work from there. Most states will even provide information and applications on their state website for your convenience.

• Find out which court you will be required to file your bankruptcy in.   Check this information here.  Then go onto there website and read all the information you can about bankruptcy in your state and in particular that court.  You should also speak to the bankruptcy department of the court, tell them that you are attempting to file bankruptcy yourself and ask what advice they can give you.  These people are the specialists and experts, their advice is free so make sure you use it.
• Also ask them about the forms you will need to fill in and where to get them.

The basic information you will need to know is what type of bankruptcy you are trying to file for, and the steps you’ll need to follow in order to do so. You can opt for re-organization chapter 13 or you can go for full liquidation chapter 7. Each of these will require in-depth information about your credit history, financial status, and any assets you own that could potentially have value that can be used to re-pay your creditors. You will need to learn as much as you can because once you’ve filed, there is a waiting period and if all your documents are not in order, they will be rejected and you will need to re-file. Can you file bankruptcy yourself? Yes, but it’s not a walk in the park.

Remember When Filing Bankruptcy Yourself You Need Your Credit Counseling Certificate

If you are filing chapter 7 Personal Bankruptcy, then you will by law need to have had a bankruptcy credit counseling certificate. Check here for more on bankruptcy credit counseling .  You must have completed this session within a 100 days of filing (that is 100 days in advance of filing not after).  This session should cost you about $25 and just make sure they are an approved professional.

On the other hand, there are bankruptcy services that can be found locally or online that can provide all these services for you. Many of these services are run by qualified attorneys that specialize in the process you are about to go through. These individuals understand bankruptcy laws and requirements for each state and not just the one you live in. Their services are not free and you will have to pay a basic fee depending on how large your case will be. The difference between this type of service and your ability to file bankruptcy on your own is the knowledge and skill required to get all the paperwork filed exactly the way it needs to be.

Free Advice When Filing Bankruptcy Yourself

It is really important that you get expert advice.  You do not need to pay for this.  There is plenty of free advice available. here are some ideas:

• Contact your local bar association and as they can recommend any free resources offered to people in your area.  They may have a list they can send you.
• Contact any local law schools, (in fact they do not have to be local but it’s a good start).  Often these schools have free clinics where you can get some great advice.  Students need practice, and they can get this by offering their services for free, do not worry all the advice they give will be supervised and monitored by a qualified bankruptcy professional.
• Take advantage of free expert advice offered by bankruptcy attorneys.  Did you know that most attorneys offer a free consultation call?  Well they do.  Search online and pick a couple. Then contact them and arrange your free consultation.  This is a fantastic resource.  Have all your information ready for the call.

Make a list of:

• Every penny you owe and who you owe it to
• Every penny you have coming in
• Any missed payments and by how long you have missed them
• Any assets you have, like for example a new car, a 5k TV etc)

Try to get as much out of the call as you can, being prepared in advance will help you achieve this.  Then if you wish go on and arrange another call, there is absolutely nothing wrong with doing this and you will need all the help you can get.

Never ever try and hide anything when filing your own bankruptcy.

You will get caught out and you will be punished.  This is the last thing you need.  Always be honesty, never try and outwith the court.  Remember, thousands of people through absolutely no fault of their own go bankrupt and are going bankrupt every year. There is nothing wrong with declaring bankruptcy when you have no other alternative.  Your creditors will probably already have made loads of money out of you through interest anyway.  Your debt may well have been paid off many times over through interest rates that you have been paying while trying to keep up. Hold you head up high and act with dignity, you are doing the right thing for you and your family.  The credit card companies will survive your debt.

If you are considering filing bankruptcy yourself it is really important that you do not make any major purchases (most people at this stage do not have the money to anyway) do not be tempted to move money from you account into that of a friend or relative, this is really frowned upon and can be seen as fraud.  You will be producing up to 12 months (sometimes only 6) of bank statements and information, so they will see everything.

It is also important at this stage that you do not try and pay off some creditors and not others.  So wait and hold back until you have gotten some good advice.  If you try and pay off one creditor and not another this can be seen as showing preferential treatment and again, is a black mark against you if your are going to file your own bankruptcy. NEVER pay off money to family or friends at this stage.

To file bankruptcy yourself will save you from paying attorney fees and allow you to file all the required paperwork on your own. However, if you can afford to have a bankruptcy service handle all your filings for you, this may be a road you might want to travel.