When filing for bankruptcy you should undergo credit counseling, fill out the necessary forms, determine what bankruptcy chapter you need to file, submit a complete list of your creditors, pay your fees, and send the requirements to the bankruptcy court in your region.
If you find yourself so completely swarmed with overdue bills to that you do not have the capacity to pay, filing for bankruptcy might be your best option. Bankruptcy, in legal terms, is a process that involves declaring an individual or organization unable to pay creditors. Here are some procedures that you must follow before going ahead with cheap bankruptcy filing florida.
Step 1: Undergo credit counseling
Credit counseling classes originated from the regulations of the Bankruptcy Court in the United States. People who file for bankruptcy are required to take two of these classes for the purpose of determining whether bankruptcy filing is indeed the best option there is. Local bankruptcy courts usually have a list of approved credit counseling classes for you to use as for your reference. You then have the option of going through your credit counseling class online or on the phone.
Step 2: Fill out the necessary forms
You can obtain a copy of the bankruptcy forms that you need to sign by downloading these at the U.S. Bankruptcy Court website. These documents typically require you to give personal information about your financial standing, debts, assets and income. Make sure you complete the required fields thoroughly and with accurate, up-to-date information. The website also offers sample completed documents that you can refer to. Submit the completed documents at the bankruptcy court.
Step 3: Determine what bankruptcy chapter you should file
There are certain chapters of bankruptcy that entail different responsibilities. For example, Chapter 7 bankruptcy involves completely liquidating your assets, while a Chapter 13 requires that you set up a system of repayment for your creditors over a period of 3 or 5 years. You will need to determine which chapter applies to your financial condition.
Step 4: Submit a complete list of your creditors
One of the most important documents that you are required to submit in court is a list of all your creditors and information about them. Make sure that the list is accurate and complete with information about the corresponding debts you owe to each creditor. If you submit an incomplete list, you might have to pay a fee before submitting the additional entries.
Step 5: Pay your fees
You can refer to your local bankruptcy court to find out the total amount of fees you must pay. Typically, bankruptcy courts accept only money orders as a mode of payment. Make copies of the money orders you send as proof of your payment.
Step 6: Send the requirements to the bankruptcy court in your region
Find the closest bankruptcy court and submit your money orders, forms and counseling certificates. Upon completion of all your requirements, a letter will be sent to you via mail as proof that you filed for bankruptcy.
The concept of bankruptcy gives an option to the bankrupt person or group to have a fresh start and a new direction for the future even when it is impossible to pay financial obligations.