| If you find that you are in need of having to file bankruptcy, you will need to know what 'chapter' you are going to be able to file. Chapter 7 enables you to write off almost all of your debt, providing you are able to prove that you are no longer able to pay due to lack of income or some other circumstance. Make an appointment with a lawyer who specializes in bankruptcy law. Your first step is to gather all your financial information. List all your debts, the creditors, their addresses, and the amounts owed. List all of your assets and the amount that you think they are worth. This would include any jewelry, clothing, furniture, and so on. Your lawyer will also require proof of your income and your tax returns from the previous year. List the amount of money that you pay out each month for utilities, groceries, gas, entertainment, clothing and any other incidentals. Your financial status will be an open book. Leave nothing out. Discuss with your lawyer about anything you wish to withhold from bankruptcy, such as your home or vehicle. These debts will have to be what is called reaffirmed, meaning that the financial institution that holds the debts will have to be notified that you are not including these debts in your bankruptcy filing. You will also have to appear in bankruptcy court with your lawyer and swear under oath that everything concerning your financial status is true and correct.( Sometimes (not often) someone from one of the companies that you owe money to will also appear to dispute this filing.) Your statement will be recorded by the trustee appointed to hear your case. He will ask you a few questions, and then you will be finished. If your debts are discharged you will be notified by mail in a few weeks. |
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