Filing for bankruptcy is a difficult decision that requires some careful consideration. As you may know, when you file for bankruptcy, it stays on your credit record for up to ten years. While many people prefer to have an attorney file for them, you can file on your own if you take the time to fully understand the process.
If you’re planning on filing for bankruptcy, one of the first things you need to do is determine if you want to file Chapter 7 or Chapter 11. Of the people who filed for bankruptcy last year, roughly 1.1 million filed for Chapter 7, and more than 400,000 filed Chapter 13. When you file Chapter 7 bankruptcy, your assets are liquidated in order to pay off your creditors. Any remaining debt is wiped clean. When you file Chapter 11 bankruptcy, you create a repayment plan for up to five years. The debt that cannot be repaid in this time period is wiped clean.
In 2005, a new bankruptcy law was passed, making it more difficult for people to file Chapter 7 bankruptcy. According to the new law, lawyers are subject to fines and fees if they file bankruptcy cases with inaccurate or misleading information. According to some financial analysts, this new law may make it harder to find a lawyer who is willing to file your case. This new law may also force bankruptcy attorneys to raise their fees to cover potential fines and fees.
If you file on your own, it’s important to submit the right forms. Federal bankruptcy forms are quite complicated, and they require you to provide a great deal of information about your debt and your assets. You can find forms on the official website for U.S. Bankruptcy Courts. While this website provides an overview of the process, you may need additional help if you plan on filing without an