The first step is to decide that you want to file for bankruptcy! You have passed the biggest hurdle and already made the toughest decision of your life. What next?
Here, we will help you with step by step guide on how to go ahead.
- Credit Counselling – it is utmost important to get a credit counselling done within 6 months prior to filing for bankruptcy from an agency that is approved by the Government. However, if you fail to get the counselling done, your case can get dismissed right away.
- Paper work and Document filing – paperwork is of utmost importance when filing for bankruptcy. Filing for bankruptcy is divided into 3 parts –
- Petition – Under this paperwork, you are required to provide details of all your creditors. This includes the name and address of the people who may have a legal claim against you.
- Schedules – the schedules include your assets, debts, along with your projected income and expenses. You will also need to furnish financial history of last 6 months.
- Creditors Meeting – the next step would be to attend the creditors meeting which is compulsory to attend. Here, the trustee will be asking you questions under oath regarding the financial affairs.
- Filing Time – it usually takes about -3-6 months to get the discharge. During this time, you will only need to attend the creditors meet and coordinate with the trustee who will be managing your case.