An individual must acquire a credit “briefing” from a company authorised in the district where they intend to pursue bankruptcy before they may file. The briefing lists bankruptcy options and chances for credit counselling that may be available.
The credit briefing is just a game; the counsellor doesn’t have to agree with your bankruptcy filing. A bankruptcy case will be dismissed, nonetheless, if the briefing is not obtained or if extremely specific exceptions to the necessity to get it are met.
The briefing may be accessed online or over the phone, and low-income filers can opt out of paying the charge.
A case is started by submitting the necessary paperwork to the bankruptcy court, including the petition, schedules of assets and liabilities, and a statement of financial affairs, along with the filing fee. Browse the official bankruptcy forms that are available for download. Not all of the forms given are necessary in every circumstance. Your main responsibility will be to compile a list of all of your assets and legal rights, as well as the names and addresses of anybody who could have a legal claim against you.
Your assets, liabilities, estimated income and spending, and some recent financial history are listed in the schedules. A person whose debts are mostly consumer obligations must satisfy the “means test” in order to enter Chapter 7 or risk having the case dismissed.
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Individual debtors are required to file pay stubs (referred to as “payment advices” in the 2005 revisions) with the court or the trustee and give the trustee their most recent tax return. You will be obliged to appear at a minimum of one meeting of creditors (the “341 meeting”) so that the trustee and any interested creditors may interrogate you about your financial situation while you are sworn in. More about the obligations of debtors.
What is the time frame?
Typically, it takes 3 to 6 months for a Chapter 7 case to go from filing to receiving the discharge order. The only obligations placed on the debtor during that time period by the 2005 revisions to the Code are to attend the initial creditors’ meeting and complete financial management training. Usually, drafting the schedules required to file the case takes up the most time throughout the bankruptcy filing process.
The discharge you receive at the conclusion of your case cancels obligations that were owed as of the filing date or that can be linked to circumstances that existed prior to that date.