Prior to filing for bankruptcy, you have to take the advice of credit counselors, they are the people judged by the federal court to analyze whether you are a material for bankruptcy or otherwise. For the purpose, they charge a nominal fee. This again can be reduced if you are not in a position to pay. In fact, it can also be completely waived off. Once they approve of you stature as a bankrupt, you can file in your papers.

Next you have to file in a certificate with a complete listing of your earning and debts. It will also ask you for your federal tax returns and associated and distinct tax documents. Next you have to fill the chapter 13 repayment plans and figure out how you plan to pay off the debt. If after all the evaluation, the court comes to the conclusion that your case is one of life-impeding illness or a severe hardship, then it discharges you of the debt. Otherwise it might look to restructure the debt and avoid liquidation.

This entry was posted on Monday, January 19th, 2009 at 4:30 am and is filed under Bankruptcy, Debt management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.