If you want to file bankruptcy, you must have documentation of your expenses, debts, and income and assets to provide to the bankruptcy court.


To start, you must have records of all major financial transactions you've made in the last two years as well as records of all secured and unsecured debts in the same time period.You also must have information on any assets you have and their value, as well as your income. Compile property documents such as deeds or car titles., Under Chapter 7 bankruptcy, you can discharge most of your debts, while Chapter 13 requires you to repay your creditors through a court-ordered repayment plan.You must meet a means test to qualify for Chapter 7 bankruptcy. if you're unemployed or have extremely low income and few assets, you probably qualify for Chapter 7.You also may be ineligible to file Chapter 13 bankruptcy if your debts exceed a certain amount, or if you don't have sufficient disposable income., Your home and certain personal property such as clothing and furniture may be exempt from bankruptcy under federal or state law.Some states require you to use the state exemptions, while others allow you to choose either the federal or state system. If you're allowed to choose, you can only use one set of exemptions – you can't use some exemptions from the state list and others from the federal list.The exemptions you can claim also depend on the type of bankruptcy you're filing. Since Chapter 7 bankruptcy is a liquidation bankruptcy, any assets you have that aren't exempt will be sold to pay off your debts. However, if something is exempt then you can keep it.For example, if you own a house worth $20,000 and your state has a homestead exemption of $25,000, you can keep your house. However, if your house is worth $100,000, you may be forced to sell it to pay off your debts.If you're filing Chapter 13 bankruptcy, you generally can keep all of your assets, but the value of the property you keep will determine the amount of your monthly payments., Before you decide to file for bankruptcy, try to schedule a consultation with between one and three bankruptcy attorneys to get a legal opinion on your case.


Even if you think you can't afford attorney's fees, keep in mind hiring an attorney actually could save you money. For example, f you make a mistake, it could result in having your bankruptcy petition dismissed.Additionally, an attorney may be able to get the court to discharge more of your debts or allow you to keep more of your property. That savings may help offset the cost of hiring the attorney.If you do decide to file on your own, check with the clerk of your nearest bankruptcy court to find out if there are any free workshops or clinics you can attend to learn more about the bankruptcy process., Once you file a bankruptcy petition, all collection activities against you must cease.When you fill out your petition, you must enter information about yourself and all of your debts, including the nature of those debts and whether they are secured or unsecured. You also will have to estimate the number of creditors you have as well as your total debts and your total assets.You must pay a filing fee of $335 if you're filing Chapter 7 and $310 if you're filing Chapter 13. If you cannot afford the filing fees, you may be able to apply for a fee waiver or pay in installments.If a collection agency has sued you or already has a judgment against you and has filed for a wage garnishment, you can prevent the garnishment by filing for bankruptcy.
Gather your financial documents.
Decide whether to file for Chapter 7 or Chapter 13 bankruptcy.
Determine which of your property is exempt.
Consult an attorney.
File your petition.
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