Filing Bankruptcy

Filing bankruptcy can be a good thing for you, but it is not something to be taken lightly. Bankruptcy can give you peace of mind by stopping your creditors from trying to collect. It can get rid of or wipe out certain debts. And it can actually make you more credit worthy because you cannot file bankruptcy again for a number of years. However, bankruptcy will be on your credit report for ten years and can follow you for years to come with the question "have you ever filed bankruptcy?"

Before filing personal bankruptcy, you need to look at both Chapter 7 and Chapter 13 bankruptcies and you need to consider whether or not you qualify, what property you will be able to keep, and what debts will be discharged.

One thing to remember is that you will have to attend credit counseling for filing bankruptcy before you will be able to file.

If you feel that bankruptcy may be for you, then you should consult a lawyer licensed in your state and have the lawyer handle your case. Bankruptcy is federal law. It is very detailed and can be complicated and complex. In addition to the US Code, Bankruptcy Court Rules must be followed. Also, since bankruptcy cases are filed in federal district court for the district in which the filer (debtor) lives, local Bankruptcy Court Rules must be followed. It is not easy to meet all of these laws, rules, and requirements.

With each bankruptcy filing, there are a number of required forms and schedules which cover virtually every aspect of a person's finances and property. Each bit of information can affect the outcome of the bankruptcy by affecting which debts are discharged and what property is retained by the person filing bankruptcy. Also, there are times to file motions to avoid liens and times to negotiate with creditors. To be honest, it is very difficult for a non-lawyer to learn and know the interworkings of bankruptcy (even most lawyers do not understand bankruptcy).

For a list of forms and schedules used in bankruptcy, go to http://www.uscourts.gov/bkforms.

In summary, do it yourself bankruptcy is not a very good idea. Personal bankruptcy is detailed and complicated. It is much better for you to have a lawyer handle your bankruptcy case. Also, because this is general information, talk with a lawyer licensed in your state if you have any questions of any nature.