How to file bankruptcy

To file bankruptcy you have two options. You can do this on your own or consult an attorney. If you are filing for bankruptcy on your own just visit the libraries and search for all the information on the websites. Do a lot of research work if you are going on your own.

This is because the rules for bankruptcy filing have changed since 2005 and to complete with the process you should be well aware of those legal terms. There are government forms which you will take from the local court. These forms come with the instruction manual which guides you in filling the form. Although the instruction manual is helpful to a large extent but you still need to know about those legal terms that come across.

For this if possible try to understand them by going through the legal dictionary in the library. Also do some research by consulting some books on filing for bankruptcy. These can be of great help if you are doing things on your own.

The law has changed since 2005 pay attention to the chapters. If you are earning good income then you will have to file chapter 13 and not chapter 7. You are eligible for chapter 7 if you are earning average income or income below the average income earned by the individuals like you in your state.

If your income calculates higher than the average income then you are required to appear for the Mean test. This test is taken so as to ascertain whether you can file under chapter seven. But in case you fail then you will be filing under chapter 13 or so.

Not all debts are discharged under bankruptcy. Such debts include the student loans, child support, tax debt and the debts that you fail to enter in your bankruptcy form. You are also required to attend credit counseling with a government approved credit counseling agency so that they can ascertain whether you really require filing for bankruptcy. This is mandatory for those filing bankruptcy.

Bankruptcy laws are for those individuals who have a large burden of debt and are struggling to pay them off. So to qualify for bankruptcy you have to prove that your total disposable income less your expenses is too less to pay off your debts. There are certain chapters that may confuse you as to keep your property or sell it. As some of such rules are confusing it is better to consult an expert so as to avoid making mistakes in filing bankruptcy.