5 major steps that you have to pursue to file bankruptcy lawfully

If you’re failing constantly to manage your financial woes, then perhaps bankruptcy may come to your aid. Acute financial need and insurmountable debts may snatch your peace of mind. In such a circumstance when debt payment becomes nearly impossible, filing bankruptcy will help you to get hold of your finances to some extent.

How does bankruptcy help?

Bankruptcy will help you to do away with all of your due debts legally. Your creditors won’t either be able to pester you for the debt during bankruptcy. This is definitely an added advantage. If you decide to pay off your debts, then you’ll be able to chart the repayment plan according to your convenience. Through Chapter 13 you can even save your assets. Now perhaps you realised how Chapter 13 may help you by visiting this page http://www.ovlg.com/bankruptcy/chapter13.html

5 Vital steps to take while filing for bankruptcy

Bankruptcy is a legal process and you must follow all the needed steps carefully to solve your financial problems. Following are the 5 steps that you must have to go through for filing bankruptcy:

  1. Get an account of your finances first: First of all you need to assess exactly what your financial standing is. Get a copy of your credit report from the credit reporting agencies Experian, Equifax or TansUnion. This will help you to realise the accurate condition of your credit accounts. You’ll have to mention all the debt obligations in the bankruptcy paperwork.
  1. Study the options to select the suitable one: For personal bankruptcy there are two options – Chapter 13 and Chapter 7. You need to realise how different the options are. If you’re unable to continue your debt payments at any cost, then you must file for Chapter 7 bankruptcy. Chapter 13 is the only option for them who want to pay off their debts and secure the assets. You may accumulate information from websites on bankruptcy in U.S. You may even consult a bankruptcy attorney to get the right guidance.
  1. Look for a bankruptcy lawyer to assists you: Of course you’ll need a proficient lawyer to help you in your bankruptcy case. The lawyer will help you to complete the complicated filing process easily. It’s important to file bankruptcy with accurate paperwork. Otherwise you may face problems during the procedure. A lawyer will make sure that all the paperwork is right and you won’t face any problem.
  1. Go through credit counseling: Before getting final approval from the court for bankruptcy, you need to go through a mandatory credit counselling session. This is obligatory under the Section 109 (h) of Bankruptcy Code. You must go through the counseling session from any institution authorized by the U.S. Trustee. The counselling must be conducted at least 180 days before filing bankruptcy. With the help of this credit counseling session you’ll be able to realize which options is more suitable for you, Chapter 13 or Chapter 7. Also, if your financial condition proves out to be stable to some extent, then you may even avoid bankruptcy. So it will actually help you take the right decision.
  1. Complete the filing process: Once your done with all the assessments and the credit counseling, you may go ahead with the filing process. All the financial documents and reports of counselling sessions must be provided with the petition. You’ll receive a date for hearing in court after you file the petition. The meeting is called “meeting of creditors” or the “341 meeting”.

These are the 5 necessary steps that you must follow to file bankruptcy. Remember, filing bankruptcy is a big step so evaluate all the available options and your financial standing well before taking the final decision.