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How to file bankruptcy. Chapter 7, 11 and Chapter 13 bankruptcy. Free bankruptcy forms. Bankruptcy filing is a Federal court proceeding which can affect legal rights to keep or use property. Bankruptcy court cases may be impossible to stop once started!
US courts free bankruptcy forms to file chapter 7, chapter 11 and chapter 13 bankruptcy. Learn how to file bankruptcy.
How to file bankruptcy - A straightforward bankruptcy proceeding generally takes 4-6 months. In Chapter 7 bankruptcy, nonexempt assets are sold to pay creditors while most debts are discharged. Chapter 7 bankruptcy filing is limited to once every six years. Notice of the filing remains on a credit report for 10 years minimum. Although debts may be discharged, loan cosigners remain responsible even after the primary borrower's bankruptcy filing. Many assets are sold by an appointed trustee, who makes partial payments to creditors. The filer has the right to retain an interest in certain partially exempt assets, such as a residence, car, clothing, household appliances and furnishings, life insurance, pensions and trade tools. You may usually choose either the exemptions provided for in the Bankruptcy Code or those allowed under state law.
In Chapter 13 or Chapter 11 bankruptcy, a reorganization plan is prepared to pay off creditors. Once filing a personal bankruptcy petition, an automatic stay prevents creditors from starting or continuing most legal proceedings. Chapter 11 bankruptcy is generally used to reorganize a business, although individuals are eligible. This type of bankruptcy allows a business to continue operating while repaying creditors through a court approved plan. If you have a regular income, Chapter 13 bankruptcy provides a method for repaying debt over time, according to a bankruptcy court approved plan. The period of time allowed ranges from 3-5 years. Only individuals with unsecured debts below $250,000 and secured debts below $750,000 are eligible. To file Chapter 13, file the appropriate schedules and petitions with the bankruptcy court and pay the filing fee. Also file a proposed plan of repayment with your original petition or within 15 days. A trustee will be appointed to supervise your performance, to make regular payments to creditors and provide the court and other parties with your financial information.
Creditors retain the right to any collateral pledged to secure a loan. The first step in bankruptcy is to file a petition and schedules at the clerks office of the federal bankruptcy court. Your petition must include lists of all creditors, your sources of income, a list of all real and personal property, and a detailed list of living expenses. Necessary documents include: Deeds, mortgages, contracts on your home and mortgage statements, papers relating to past bankruptcies, copies of tax returns for the past two years, all legal papers, summonses, complaints and notices of attachment, execution or garnishment, credit card bills, medical bills and any other documents regarding outstanding debt, plus statements and passbooks for savings or checking accounts for the past year and student loan papers. Free bankruptcy forms to file bankruptcy. The fee is about $175 payable upon petition filing. Under certain circumstances, the court may allow fee payment in installments.
Certain debts cannot be discharged through bankruptcy, including most taxes, alimony and child support, student loans and some property settlements. Other non dischargeable debts result from fraud, willful or malicious injury, certain fines or penalties, and claims incurred from driving under the influence of alcohol or drugs.
A bankruptcy filing stays on a credit record for 7-10 years, but need not be a permanent handicap. Laws forbid discrimination against persons who have declared bankruptcy. You cannot be denied a job, be denied or evicted from public housing or be denied a drivers license because of bankruptcy.
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